Based on the above Mar qtr report, the processing cost is ~$30/t. Since grade is 0.5g/t, cost per gm is $60. Cost of producing 1oz =$60*31.1=$1,866/oz. Profit margin is = $2,600-$1,866=$734/oz. Gold produced in milling 3,000,000/4t of ores per quarter=750,000 * 0.5 * 0.9(recovery rate) / 31.1 =10,852oz
Profit per quarter = 10,852 * $734 = $7.96M
Is $7.96M out of milling LG stockpile of ores, enough to cover for exploration and to keep the light up?
Two other considerations:
1) Complete mining of U/G stope in 1Q 2023.
2) NTM mining pending on approval.
