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20.5¢ wiluna mining corporation limited.

"OK for now even if AISC is higher than expected for the...

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CaptainGrumpy

4,596 Posts.

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21/08/18

21:33

Post #: 35077040
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Originally posted by Drugo ↑

Yes. I think they are (well and truly) OK for now even if AISC is higher than expected for the quarter. (which it will not).
You have to remember that recovery rates in July were around 91% which means that AISC is reduced by 15% -20%. For this quarter. ( Plus their was a overburden to be removed).
Plant is running well.
The 14 mill in March repayment can be negotiated. It not written in stone. As the debtors are actually employed by BLK. (unless they think they are better operators and take over).
They have already sold their options/shares and looking for further employment.
So all debt is covered.
If options are exercised then there is clearly no cash flow problem.
However management has back up plans as stated in previous posts.
You also have to remember they have 28K oz hedged at $1,725 as a back up too.
Share price currently predicting the worst. I beg to differ.
Proven reserves should increase for the next quarter. (stuff to mine now). After recent drilling results as management now are focusing on the next six months and not a 200K/ann feasibility study.
They have plenty of cash until March even without options exercised.
If AISC holds around $1,150-$1,350 then the March payment should be covered too.
It depends on development costs for the future which they are concentrating on.
I think they realise that millions spent on feasibility studies are not needed and cash flow is needed right now.
So breathe. As the share is bargaining for the worst.

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"OK for now even if AISC is higher than expected for the quarter. (which it will not)"

Pop quiz - How many times have BLK met guidance in the last 2 years?

Last edited by CaptainGrumpy: 21/08/18

BLK Price at posting: 4.1¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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