Ladytradr - just using as mine feed the ore from two underground...

Ladytradr - just using as mine feed the ore from two underground mines and not using available open pit ore is called "high grading". Whilst thisd practice gives the company a "sugar hit" and boosts its production temporally is then has a sting in its tails which is that the open pit ore is sterilized and not processed since to do so would cause production to drop and AISC cost to rise. Good management practice is to aviod this outcome (and thus increase life of mine) by conserving production at a sustainable level by blending high grade underground ore with open pit (lower grade ore) so as to increase the life of mine at a sustainable production level. If OBM were to start "high grading" and sterilizing open pit ore this would be obvious to informed investors and thus inadvisable (i.e Hawkes point would surreptitiously be selling out). We will see what happens but IMO it's not good long term strategy to "high grade" and thus sterilize lower grade ore and then take a hit when the high grade ore runs out.

What companies sometimes do is still mine the low grade ore and send it to stockpiles and claim the low grade mining and haulage costs as credits against their AISC (but they don't process it). When the high grade ore runs out then they process their stockpiles and use the excuse that they are producing lots of cash (but little profit) since they must then debit the stockpiled mining/haulage against their AISC (which they used as a credit when it was mined and stockpiled). Something to look out for in the quarterlies should it happen.but I would prefer sustainable production and avoid sterilizing stockpiled open pit ore which shortens life of mine for a short "sugar hit".