First we have Pit 5 delivering ore then we get Viper according to the plan mentioned by Doc 2 in Africa. So let's have a look at some numbers from the latest information, like mill running at an average of 3.5mt/a rate.
We know the grade of the various pits from the resource estimates....
https://www.investi.com.au/api/announcements/ffx/e33566ab-901.pdf
So we can do some rough calculations.. pit 5 840,000 tonnes at 1.1g/t (plus some newer great intersections that likely increase both grade and tonnage)
However at the 3.5mt/a rate X 1.1g/t = 3,850,000 g X 91% for recovery / 31.1 (gms to oz) = a rate of 112,000 oz of gold, but for just under 3 months, or about 9,333 oz/mth.
At that rate 9,333 oz per month and even assuming a 'high' AISC of $US1400/oz would give approx $US500 X 9,333 or positive cashflow of $US4,666,666 per month.
For Viper the numbers are not quite as good with a grade of 1.05 g/t, but higher quantity of 1,545,000 tonnes. So for Viper we would be getting around 8,961 oz/mth or at the same $US1400 AISC around $US4,480,000 per month in cashflow.
Combined those 2 pits give 8 months of production, with both having upside in both tonnage and grade possible from recent great drill results that have not been included.
Around $US36 million in cashflow for the JV is around the likely result over the next 8 months, assuming the $US1,400 AISC cost is around accurate for these initial lower grade stages. This is all cash that would be reinvested into setting up the main pit for mining, dewatering and cleaning out tailings, re-estalishing benches and haul roads etc, so we wouldn't have to worry about splitting this cashflow.
I suspect that such numbers would surprise the market given our current share price, yet they could easily be improved on by higher throughput, higher grade including the more recent drilling results, lower AISC or even a higher gold price.
There is a lot to look forward to, especially when we get some numbers from the recent production. I think Dr Mike holding that 22kg bar of gold was a warning that great production is coming soon, the numbers to surprise soon.
There is also a lot of drilling to happen, which will continue to raise the total tonnage of good grade gold we have.
We keep getting snippets of great information, like the mill running at an average rate of 3.5mt/a that was in Dr Mike's most recent video interview. They all keep adding up to a great investment opportunity here IMHO.
(20min delay)