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28.5¢ austar gold limited

Ann: Production and Geology Update, page-19

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vertigo

11,416 Posts.

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02/12/20

14:25

Post #: 49297818
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Originally posted by josimar: ↑

"Operational impact to Quarterly Gold production to date: Recent operational issues at the Morning Star Mill have been largely resolved. Gold production was materially reduced in October and November, however with Miningproduction and grade outcomes on track to meet or exceed budget for the quarter"

The Last Line... so they are on track to meet or exceed budget for the quarter. So the questions then are, what was budgeted? Break even, make a loss or make a profit? To answer that, just asked yourself whether they would seriously budget a loss for the quarter, when the Chairman had stated how teed off he was that the company was still making a loss?

And also will they achieve it when they stated they will make budget or exceed that? In this regard take into account that the volume of mining ore produced is less than a third of mill capacity. So they could easily process three months of ore in one month.

So the company could be announcing a first profitable quarter with the promise of increased ore throughput with the development of more reefs. Whether the new reefs have profitable grades or not and whether the gold price goes up and down is a question for another day.

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Correct.

Also gold seems to have bottomed and is on its way back up.

AUL Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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