If OBM does now has 6 months of low grade (soft) material sitting on the ROM pad waiting for blending with high grade ore prior to processing, does that mean the last 6/9 months of mining/blasting/transport costs have been artificially high (by a factor of 30%/40%)? A 6 month stockpile is obviously very handy to have all ready to go … but it does suggest to me that the numbers that are likely to flow out over the next 3/6 months should show a material improvement in terms of mining costs. OBM will obviously keep mining some low grade, but it won’t need to be at the same mining rates we have been seeing over the last 9 months. With accounting standards, maybe there is a way this can be dealt with in the books for quarter on quarter comparison reasons If not, it would certainly reinforce the reasoning behind Hawkes Point crunching the share price back to 5 cents and underwriting the entire non renounceable issue. Accountant views on this appreciated
LT
OBM Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
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