In the conference call, Richard was asked to what level fuel and other inputs had eaten into margins. To the best of my recollection this was what he responded with.
Wages were up roughly 15 percent however they hadn't felt the same staffing constraints as WA thus far.
Steel and many other construction materials had increased by up to 40 percent (not ideal timing when building a new plant).
They hadn't felt the increase in fuel costs as yet as diesel prices had remained fairly stable in Burkina Faso.
A reasonable part of the increase in costs are attributable to the enhancements of the processing plant, power generators, icrease in strip ratio/cutback, bolstering of stores and further increases on exploration and Kiaka infill drilling and Kiaka infill drilling for jorc reserves estimate and FID. FY 23 AISC is expected to drop fairly significantly although capex will remain high as cash is spent on Kiaka construction.
WAF Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
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