Australia's largest stock trading and investment forum Australia's #1 stock forum

G79

Click for more information

0.00%

2.7¢ goldoz limited

Many of these plans have been covered through investor sessions...

First 29 Last

Share
Profile

Follow
wombat777

11,249 Posts.

29637

31/08/17

23:59

Post #: 26915412
Share

Originally posted by bdell ↑

I had a bit of a chat to a bloke from MUS today. Forget his name, been havn some amnesia probs since my stress levels went up a bit after some knuckleheads here gave me crap.

He was a nice bloke and he was in no hurry. We talked about various things and he sure let some cats out of the bag so this is real news not the fake stuff. He said current yield is now 0.5 crts/t (do the maths and it is 207k pa) and also about sites NT01 and NT23 where they found very high grade. He said not to read too much into this because it was only a 2t sample and it could possibly be skewed, ie not a truly representative sample. Non-the-less he said that the 2.2km strike length has now grown to 3.3km which can only be good. I asked whether they intended to use any of this high grade feed between now and the auction and the answer was yes. He’s fairly confident this will assure the 200k or better by auction date.

We chatted about plant operating hours and he explained that the plant operates from Monday to Saturday but due to various stoppages and maintenance stops they generally only achieve around 5 days of plant operation in a 6 day period. Some (bigger?) maintenance jobs are done occasionally on Sundays.

We spoke about the wet season and he explained that while they can access some areas during the wet it is much smarter if they can stockpile sufficient gravel for 4 months. Working in the wet is far less efficient.

There was talk about 2 and 3 shifts along with time frames. While I have heard vague mention of same on here before I was very pleasantly surprised to hear that they would move to 2 shifts first, train up more operators and then start operating 3 shifts all within 6 months. So he is talking production of around 600k crts pa could be happening in 6 months or so. I said I was impressed to which he said but there’s more; they are planning to add something I think he called a rotary pan to the processing plant which sounds like it will speed up the rate of feed through the plant. Maybe also some other additional plant equipment too. He then hit me with an 18 – 24 month production target that had an awful lot of zeros. Bugger this amnesia, I just can’t seem to remember what the first number was. Another glass of his special stress medication and it might come to me in the morning perhaps?

Anyone know what 207k pa would bring at auction pa ? Or 207k x 3 shifts? He did tell me not to expect 100% high quality tho.

Expand

Many of these plans have been covered through investor sessions as well as discussion at the last general meeting. Both wet-season stock-piling and the capacity to go to up to 3 shifts.

https://hotcopper.com.au/threads/cj-rrs-briefings.3395541/page-118?post_id=24423807

I was in the group at this discussion at the Rising Resource Stars conference in the post here (quoted section) so it's good to see further confirmation that other plant upgrades are being implemented.

https://hotcopper.com.au/threads/mus-oppies-musoa.3569898/page-30?post_id=26123001#.WagLo5Og-qA

My detailed numbers on a scenario of 600ct pa are here (and were posted above):

https://hotcopper.com.au/threads/mu...612726/page-158?post_id=26791143#.WagSOZOg-qA

I've marked-up the chart. I assumed an 83.6% clearance rate for the 600,000ct tendered.

I'm intending to ask in the morning whether they will proceed with a 200,000ct target for the April auction. I assumed 150,000 cts as a conservative figure due to the wet.

Note - scenario 1 was just used to calculate P/E. That scenario based on assumptions in the Independent Investment Research assumes 100% clearance rate (IIR's assumption), so be careful in using that as an indication of outcomes.

MUS Price at posting: 7.7¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

HAS

Hastings progressing Yangibana to production with lower costs

ZNC

Zenith's sale of Develin Creek delivers $975K cash, with shares up 13%

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

The iron ore comeback: Can it last?

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

There are more pages in this discussion • 16 more messages in this thread...

First 29 Last

Add G79 (ASX) to my watchlist