to answer your concern about AISC. AISC doesn't stay the same...

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ecnalf

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02/02/24

09:01

Post #: 72197729
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Originally posted by dogo: ↑

The production cost seems too high. Even we don't add the $7.673 million development cost(stripping) and $2.111 million paid for property and equipment(tail construction payment), the cost is still around $2300/oz.

The cost was significantly lower when they were doing the toll treatment. I copied the below from the quarterly report from Dec 2022.
Toll treatment campaigns were completed during the quarter, production comprised:
129,389t at 0.87g/t (head grade) from the Dreadnought-Empress low grade stockpile with production of 3,460oz at a cash cost of $2,157 per oz
40,982t at 2.21 g/t (head grade) mined and processed from Big Blow open pit for production of 2,762oz at a cash cost of $1,588 per oz

Q1 2024 is very unlikely to be cash flow positive, given there was 10 days power outage. Even they can run it in full capacity in the remaining 81 days, they can only achieve 89% overall availability which is as same as the last quarter. I hope they can reduce the production cost ($13.4 million). If they only produce 7k oz per quarter, the production cost alone is over $1900 / oz even don't include the staff/admin/development cost. It doesn't make sense that they have spent ~70 million dollar refurbishing the plant and end up with the cost is more expensive than toll treatments.

Also in September quarter, they produced 3.3k oz gold and only sold 1.5k oz of them. They didn't mention the remaining 1.8k oz in the recent quarterly. Can we assume there are still a few million to receive?

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to answer your concern about AISC. AISC doesn't stay the same during LOM. credit to @interloper01
FML Price at posting: 17.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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