1. They keep going on about sweating the mills. Looking at the throughput guidance they still aren't planning on doing that at Peak with a mid-point guidance of ~700kt on a plant that has a nameplate of 800ktpy. It has been what, 2 years already since completion on the upgrade, and they still haven't ramped it to nameplate.
2. Dargues, what a nightmare. I noticed just quietly they the remaining mine life is now expected to have an AISC ~$150 per oz higher than the LOM plan when we bought it. This thing will need to strike some significant gold on the drill bit, and then actually find a way to mine and process it profitably for it to breakeven on it's purchase price, let along earn the company a return. Even then, pre-existing shareholders will likely still be worse if than if the acquisition had never happened due to the dilution involved.
All in all an uninspiring finish to FY21, and underwhelming guidance for FY22. Kairos was always only ever going to be a contributor to the overall Peak throughput, same as Chronos was. Still would have liked to have seen this new exciting area contribute to a significant increase in both throughput and NSR through opening of an additional ore source which is also ridiculously high grade. Hanging on for Federation now, surely they can't screw that up.
AMI Price at posting:
40.5¢ Sentiment: Hold Disclosure: Held
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