Translating the above that suggests a cash cost of $A1250 per...

Translating the above that suggests a cash cost of $A1250 per ounce for gold for the first year. So a comfortable margin.

It needs more expertise than I have, but on silver the plant capacity is 850000 tpa (page 42 Prospectus).

The silver stockpile is 515740 at 70 gt and produces 1160000 ounces of silver (page 48).

Revenue per tonne of silver at $35 per ounce is therefore $79 per tonne.

Can anyone estimate the plant cost for silver from stockpile (rather than from open cut mine) from the costs table for gold on page 57-58?

You delete the haulage cost of $19.50 per tonne as the plant is at Wonawinta. That gives a cost for silver of $71.35 per tonne. Not much margin.

Even if the stockpile can be fed straight into the mill with no mining cost of $20.80 (very optimistic), the implied cost is $50 per tonne and the margin would improve to $29 per tonne, generating around $15 million over a year. Can the processing/crushing cost be reduced at all with silver? I have no idea.

This is presumably during the year from the end of Mt Bonny gold production in June quarter 2021 (phase 1) until the end of Phase 2 in March Q 2022, when Wonawinta moves to open cut.

Anyone have the expertise to try a better estimate for silver costs from stockpile? I am guessing above.

Cash flow is $29 million year one from gold from the open cut at $A2500 per oz gold.

Year 2 cash flow on the guesses above is $15 million (?) from stockpile silver at $A35 per oz silver.

I suppose risk has been reduced as the plant seemed to operate as expected last quarter (according to the quarterly) and the first gold exploration results just below the open pit at Mount Bonny were good. Even so the market cap of $150 million seems high, until more exploration results are available from both gold and silver drilling, so the economics of ongoing production are clearer.

On the plus side the operation can finance intensive exploration for a couple of years on these numbers at current gold and silver prices and an operating plant is available if suitable reserves of either gold or silver can be proved for open cut mining. They certainly know where to drill.