re: any news?? teddy
"The other reason to bail on the Hedge orders is that the cost of extraction is more than the buy out price of the hedge!!
One would tend to think that at $700+ per ounce in production costs that this may be the case on the volumes they are contracted for??"
It is a volume game gold mining and you need a certain volume throughput to justify the mill to run and under that volume the costs are greater than the gold recovered value. May as well leave it in the ground or stockpile and then run the mill flat chat for 3 months. This possibly explains the reason GTM didn't ramp up throughput earlier as they had some doubts about the lower levels and were giving themselves time to find other gold or higher grades. I just don't understand why this isn't reflected in the reserves and resource statements so something is drastically wrong as every assumption comes to a dead end if the paperwork is in order. Costs became huge overnight because mine life (gold output) shrunk and burdened on a month with a breakdown and obviously a period where they were getting poorer grades from Chariot. Very quickly the amortisation of mine costs blew out production costs over a smaller resource then rthe plant maintainance brought forward wouldn't have helped either. Now closing down the hedge is an amazing step to take, if true, as as soon as they can find more gold or settle Strata they will have to open it up again at a lower price. How dumb is that?. They are either open for business and want to succeed or they are throwing in the only good paper they have and playing musical chairs on the accounts.
This is beginning to look like the liquidation you have when you don't have a liquidation. Call it a recapitalisation but at what point does it become a new company with old holders dilluted to oblivion. 18mill at 1c issue - I can't count that high.
GTM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
