Not great reading in my view, everything for the quarter looks to have come in below guidance. Adding to that, they are raising the AISC to around $1650-1750. This is up from the previous AISC guidance of $1300-1400. This is a $350/ounce difference. Quite substantial. Yes, there are higher gold prices but not to that magnitude and it will therefore eat into the profits. Most problems seem to be external factors such as the Mining Code. Declining production is also not a great look, but the main pit is finishing up at Mako so that makes sense. Hopefully we can get these new satellite deposits producing asap.
I hope that on a share price perspective, the damage has already been done, and all this bad news is priced in. Despite the $160M payment to the Government, we still have a decent cash position and plenty more to come from the Ravenswood sale. It is now a matter of management working to decrease costs and to drive up production the best they can. Hopefully this was the last of the poor quarterlies!
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