The mine plan for the restart was based on resource 1moz 10 year life and I think $1850/Oz avg POG (maybe lower) at avg grade 0.81g/t and I think ASIC was like US $1210/oz. I was disappointed with the mine plan ASIC because before the shutdown ASIC was around US$800/Oz, hence Chatree was dub 'Low grade King'. But costs have gone up, back then Chatree had its own smelter and all the equipment was probably fully depreciated and the royalty regime has changed.
Last QTR the mine was producing 100% mined ore at avg 0.55g/t. if you extrapolate last QTR production to mine plan avg grade 0.81 g/t you get ~ 117koz.. close to 120koz p.a. Low grade ore stockpile grade avg ~0.4 g/t.
There was comments from the quarterly that grade was expected to improve with depth... Perhaps Denial and Danbradster has more info on this... It is it the orientation of gold mineralisation A pit that they need to get to access higher grade. From memory in 6 months prior to Chatree mine shutdown produced $70m FCF but they achieved it by wrecked the mine plan. Perhaps some of current mine activity is fixing the mine plan?
KCN Price at posting:
$1.87 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)