Interesting after reviewing the quarterly in a bit more detail, I previously said don't underestimate the costs associated with dewatering.. I assumed that diesel pumps would be required as the weather event would have impacted the electrical supplies and the size of pumps required would have meant that perhaps the electrical supply would not handle several large pumps running at once.
The latest quarterly states diesel credits as 287 K. The credits are 48.8 cent per litre in QLD., for off road diesel use. Using a price of $2 per litre this implies that the fuel costs were around 1.1 million, before rebate for the quarter. The previous quarterly (Dec 2023) the fuel rebate was 154 K. So in the Jan. quarterly nearly twice as much fuel was used (I would think this was all at MC, Spain fuel costs not rebated), at a time when the big excavator was not being used and haul trucks were limited due to the flooding. So, I think it's reasonable to state that the fuel costs of the flooding were around 750K, before rebates, not including that some pumps may have been rentals, as I don't think you should gear up with equipment like that for an event hopefully for the mine and the area won't happen again for many years.
So including another once off cost of potentially 1 M, (fuel costs and rentals) for the dewatering plus the other once off costs the quarterly looks reasonable considering the ramp up stage is still in progress. On a side note, how useless is the "quarterlies available at current situation" in the financials. The once off costs at EQR results in 0.3 quarters available at the end of the quarter. G6M stats 4.3 quarters remaining due to the grant being received (a once off bonus) in the quarterly. Totally distorted and useless metric, is the viable quarters remaining.
EQR Price at posting:
4.9¢ Sentiment: None Disclosure: Held
