EGA (ASX) Ann: Investor Presentation

Originally posted by Resurgam ↑

Doubt you were ever a bogan @Davisite.

The existing decline will need to be refurbished, the current decline only goes down to the 1220RL the rest will be paid for by FCF. See below from PFS.

View attachment 1204854

I used to think DRM was awesome, but over the years they really struggled because they didn't have the scale to hide hiccups that happen along the way (mill break down, extra dilution in a stope, etc). All I was saying is that the FCF isn't big enough to make good money from this. If your mining 4.5g/t Au you need to be mining a lot of it.

I don't know why approval would be held up to the south unless there was some environmental or heritage issue there? EGA needed those ounces in the mine plan to increase to annual production to earn more FCF to pay for above and get closer to the more attractive 100koz/pa producer. They just won't have the critical mass.

Anyway thats enough from me, happy to be proven wrong.

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You probably right on the bogan front

DRM is awesome - what was not awesome was the previous management. Since LJ has come in things are looking great. I am up over 100% on my investment in DRM so I can't complain.

I think where you (and most of the market) is going wrong is thinking that EGA is mining 4.5g/t - they are not. What they are doing is instead of stuffing around trying to avoid dilution with narrow drives and tinker toy equipment is running wide drives down the middle and letting the ore sorter solve the dilution problem. With a typical narrow vein mine the return is totally dependent on the quality of the crew underground and their ability to avoid dilution (very hard). With ore sorting you take away this problem and you also gain all the benefits of using wider drives. It really is a new way to mine.

I do think EGA has a problem with their communication - they are not making clear what they are doing or planning to do. They seems to be running EGA like the investors are all experts in underground gold mining and we don't need any explanations. In a sense they are right since the SP is not going to affect their ability to mine, but at the same time we are not going to get any excitement without much better communication.