One thing I applaud is the setting up of a training base for new staff at Cue, so they can teach newbies the safety, methodology, machine operation all of which are necessary and allows them to train up new people to mining instead of hiring from a floating labour pool that has too few trained operatives. Building of stockpiles too reduces throughput at times, but it allows a cash flow buffer for temporary mine closures from such things as floods, which certainly do happen at times in this part of the world with cyclones etc.
Moving from diesel to gas and solar is prudent especially with the worldwide shortage of diesel fuel at the moment. Out there in the desert is the best place for solar generation, but you need the gas backup because solar is somewhat intermittent even out there. Using a specialist supplier may de-risk what is otherwise an area in which the company has little expertise. This given I would keep the existing diesel generators in operating condition, in case of failures.
These two things will not have an immediate big jolt positive impact on profitability, but with time a substantial improvement in ore mined and reduction in plant costs are likely.
Gold is still falling, in $US which is what people watch, but in $A it has not fallen that much at all, with the Oz$ sitting around $0.71 US.
WGX Price at posting:
$1.59 Sentiment: Buy Disclosure: Held
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