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28.5¢ austar gold limited

IzzyOther than the continued abysmal performance by the board my...

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aurifice

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03/05/21

09:57

Post #: 52887403
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Originally posted by Izzy79: ↑

It's a bit hard to comment magix66 when there is an extreme lack of data. From what I can tell, using conservative rough figures $70K/kg gold, 7.5g/t grade and some scratchings:
Dec Qtrly reported around 4kg of gold sold for $277K (rough estimate). They also reported just over 2300t hauled for the quarter with processing issues restricting dore production. Should have conservatively left 1500t stockpiled ready to process for Q1.
Mar Qtly only reports $971K of reciepts - $500K linked to concentrate that already existed before the Qtr started leaving $471K - again at 7.5g/t only needs around 900t to be processed. Also should be easily achieved during 1 month of part time operation.
There was no mention of dore poured over the month, concentration processed, stockpile size, volume hauled for the month. What was mentioned was:

"While realised Dore production was impacted during the Quarter, mine productivity was maintained and
this has continued to create substantial surface stockpiles capable of supporting extended processing
operations for the foreseeable future.

There was a reasonable level of processing for the quarter up until the last week in March..."

One would ask why WRM is interested in AUL when reflecting on the last quarterly. The reported figures are not a surprise to WRM who would be well aware of the data mentioned above that is not included in the Qtrly.

In my opinion, stock piling of gold - in ore/ dore/ concentrate is occurring which in turn promotes a depressed market value for AUL and adds to the likelihood of a WRM takeover (AUL shareholders votes required). I'm not confident that we will see a representative picture prior to the takeover being completed. The next qtrly isn't due till after the proposed takeover is completed in July. I've seen the same song and dance before - frustrating to watch from this side of the fence - as a shareholder, what else can you do other than look forward to the takeover being completed.

I've still got a buy on this whilst WRM is hanging around - who knows, if I keep buying at these prices I might get back into the top 20 LOL.

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Izzy
Other than the continued abysmal performance by the board my major concern, if I were a shareholder, is lack of ethics. Gill a non performing director for a number of years, resigning a month before the merger announcement and now his trumpeting of a “world class asset”.
If your suggestion that they are stockpiling material intentionally in order to depress the share price is fact then that is further testimony as to the lack of ethics.
I would like to see a photograph of the ROM pad as I could then make a guesstimate of the volume of ore (rock) at grass.

AUL Price at posting: 28.5¢ Sentiment: None Disclosure: Not Held
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