Hello guys, please forgive my intrusion - great discussion I believe you are in the ball park, give or take gross / net etc all good. Your analysis approach is excellent, it needs to flow to SP to do us any good and this is what is getting me excited.
I am tearing this thing up as part of the process of the report I am working on. I am working with the company on greater understanding as I go to ensure accuracy. Puts me in an interesting position. I have gone over the history post 2007 Paddington purchase and right through the annuals and many of the other reports, over the web site and on site at the mines and offices meeting the staff.
Everything seems to going our way and this is highly deserved IMO. In 2002 PDome produced 225koz from about 3.2Mt ore at 2.3g/t head grade. 308k oz in 2003 would be much harder to match as head grade was akin to rape of all known higher grade reserves at the time. But the gold field is giving - still uncovering more and more with many surprises to come. So anything is possible with enough time.
The projects coming on in near-term and mid-term future and the lift in grade at Homestead looking to lift grade overall at mill, especially when Enterprise gets developed.
85% recovery not perfect however ore is pyritic so a floatation circuit might life recovery closer to grade of 2.1g/t to replace lower grade ore currently used for production.
This lower grade ore (Navajo and maybe Janet Ivy) should end up in heap leach creating a second production circuit. The better parcels located by grade control can go under the underpass and straight into the mill.
Seldom have I seen a less understood company by the market which (unlike Zijin, Sprott, BSteel and you guys) have not looked in too long while major progress has been made. I mean it this is startling. Not to say risk is not inherent in all mining etc DYOR&DD - nothing is a given in mining - but at the same time this is a fantastic story.
SO I look to coming quarters with anticipation as well as this one - management have done an amazing job during extremely difficult times can't wait to see what they can do in this gold price environment with net zero debt, no hedge, loan conditions lifted, greater understanding of the deposits and a rising gold sector. Project pipeline and plans will evolve slowly as does all mining but the trend is clear here.
Greenfields exp also a very enticing prospect given the mineral trends they sit on - but much further out.
Keep up the analysis, good luck to all of you (us).
Very best regards, CW
NGF Price at posting:
20.5¢ Sentiment: LT Buy Disclosure: Held
