This announcement states the ASIC is forecasted to be within guidance range 1360 - 1390 AUD to Dec 17, This is significantly higher costs considering history has proven that we can operate at approx 1220, I understand there were some issues in early 2017 due to rain events that caused a higher ASIC but don't understand why the forecast extends out to Dec17,
Does anyone have any rationale as to why we are forecasting such high costs.
Excerpt from today's report
• Millennium on track to achieve production guidance for the six months to 31 December 2017 of 41,000 – 43,000oz at an AISC of A$1,360 - 1,390/oz
Without calculating exact it appears that even with the higher POG we are looking at only ~$250 to $300/ounce clear, so at todays POG this calculates to approx $20-25m / annum which barely covers forecast drilling budget. Our ability to build cash reserves for capital projects may be limited
Any thoughts from anyone, perhaps I've missed some announcement but I've been with MOY for years now so I'm familiar with the past costs
Appreciate anyones view or constructive comments
MOY Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
