No - cost inflation is not anyones fault. But just saying there's cost inflation without giving long-term price / revenue forecasts and project evaluations is pointless, very poor imo - but very easy for them to do. Will the assumptions and forecasts be accurate, conservative or THHD - who knows - but state them to keep us informed and let us decide.
I'm a shareholder - it's not my job to do calculations they are supposed to do.
Annual resource and reserves statement (released 20 June 2023) assumed McPhillamy's long-term reserve gold price of $1760/oz and a COG of 0.4g/t for >2.0moz - so yes some massive potential upside on revenue forecasts at todays POG - but bearing in mind today's announcement had AISC at up to $1800/oz - does that mean McPhillamy's potentially has zero ounces in reserves using $1760/oz gold price? If so, wasn't RRL's last reserve total 3.6moz? That's a substancial knock if the 2moz assigned to McPhillamy's is removed and on an assumed annualised production rate of 400koz would put the current reserves-based average LOM at 4 years without depletion. Yes - that's all very simplified and operations may well go for 10+ years as resources are proven into reserves - but what are the facts and what's assumed?
I will be very interested to see if the reserves assumptions change at the next Resources and Reserves release in a few months time - and what change will be made to reserves.
All IMO & DYOR
GFO
RRL Price at posting:
$1.92 Sentiment: Hold Disclosure: Held
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