1. Back in 2013 aus to us$ rate was 1.00 to 1.00 parity, now its 0.78aus to us$, thats a drop of 22% in the aisc - Drop in exchange rate lifts AISC - also lifts price received but adds to cost of imports
2. Back in 2013 diesel, oil price was $110usbarrell, now $50 thats a halving of transport cost - Are you buying fuel at the bowser at half the price it was a year ago? Don't think so. There is some reduction but only slight. A big component of fuel cost on site is transport to site - not just the purchase of the fuel
3. back then pos was inc a spend of $200M for its own mill at W! Now its not needed as the mill is at bhps lienster, so $200M capex saved and NO DEBT! Agree
4. The transport cost W to lienster is cheaper and half shorter than W to Bswan at $4.00 aisc 2014 dfs, so has to be much much less than 4.00. Are we comparing the costs against the "build your own" feasibility or the BS dream costings? Don't think this is relevant.
5. Mcmahon, forge, barminco, niwest all laying off workers in their thousands last few months, desperate for work, im told contract costs are 30-40% cheaper now than 2013, shown in SIR recent cheaper contracts with barminco. I see no drop in contract costs. Employees are not taking pay cutes but yes, the contractors are watching their margins and you may do slightly better in todays environment. Remember, the contractor needs to make a profit as well.
6. W to lienster aisc is $2.80 inmho. - Your opinion and not arguing, not worth it
7. Dont confuse LJ BSwan DFSs. Not sure of the point here?
8. W capex already spent and fully funded, $6M spent in dec qtr , water level below 425m below ground and dropping as we speak, exposing ALL upper level shoots. If this is the case, why can't the company announce this? until then, this is your opinion only.
9. G & H shoots & near surface open pit at those shoots found years ago n drilled in oct nov some 4 months ago results hidden n held back from market, equates to a substantial reduction in costs there maybe even halving of costs It will be slightly lower operating (possibly) but not sure about any capital costs to develop to these. Lack of information again
10. W infrastructure, toilets, staff rooms etc all built since 1969 ex mill removed all there are ready to use - Should be in good shape so agree to this but only small saving.
11. No debt needed to restart W, no loan interest in the costs, cn pd by shares to jbank Agree
12. Instant large profit operation at W, many on here est $30M to 60M pa. We hope but need information to confirm
13. 80% bhp offtake kept by pos, much better than deals with wsa mcr pan even sir, undisclosed for good reason, prior estimates were 70% so pos keeps more profit, reduces aisc by another 15% Show me the terms - again, only your opinion (most have factored 80% in, not 70%)
14. contracts offers for mining n transport renogotiated even cheaper and cheaper since oct 2014, another 10% saving there Have there been any offers made and on what basis are you saying cheaper
15. Free water from W deeps, M tonnes of it Always has been
16. Tailings at W there since bhp, wmc operation built it up for 5 years prior to shutdown in 90s, sits there worth 6 months of processing from a bulldozer above ground operation, just add water
17. Gold tailings massive, gold mills all around esp at laverton, easy bulldoze above ground transport nextdoor to any one of the gold mills nextdoor wi 100km
On the tailings, most of this comes from Lancefield which was a refractory ore body and required roasting. Recoveries from refractory tails is difficult, often complex and not cheap (compared to free mill ores). It will not be a case of dig it up, mix with water and get gold. This resource is a long shot at making money, that's why it is still there.
POS Price at posting:
13.5¢ Sentiment: None Disclosure: Held
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