Ann: MKR Targeting Near-Term Gold and Silver Production in Cobar, page-2

I know you're waiting for my downramping so...wait no longer.

BACK TO THE FUTURE! going back to the days when Polymetals had a plant at Boppy that last ran in the 2000's.

The Good:
-They save A$7M a year in haulage
-no more dirt roads (So you would hope no more weather related haulage gremlins)

The bad:
-They've reduced their throughput to about 25tph (200kt p.a. / 365 days / 90% availability)
-They've got to spend 10-15M to build a new plant (this figure is pretty vague at best, does this include civil works required? it only mentions the purchase cost)
- They will have to build a TSF at Boppy. That alone will be in the order of a few million (and thats assuming they get permission to build it)
- They have to upgrade the camp. Last time I was there there was only 1 MKR guy living in it, so assume the unused dongas will need some love OR they get a minibus to drive in and out of Cobar and the end of each shift
-Still no debt paid down and still no production until the end of the year

Obviously the financier approves otherwise waiting for production to start until after the debt is due would be a red flag for me; the fact they've announced it shows they are still hopeful they will get their money back in time.

I'd guess they'd now be looking to spin off Wonawinta. Too much to refurb now and too isolated for Au. Although no base metal player in the area would pick it up as it has no float circuit