Some on this forum are being a little too negative. Yes, the numbers are not great but there is room for improvement which improves the numbers.
1)Gold hedge is 126,835 ounces at A$2,367 to September 2025. Any production over this amount can be sold at spot. At 75,000 ounces per year and 2.5 years. That is an extra $23m over the period or $775k per month or $2.3m per quarter and takes care of the interest bill on its own.
The above does not include any gains from a re negotiation of the interest rate or loan period, or a reduction in capital repayments etc.
2)Potential to realise funds from the spinoff or sale of the Pirra Lithium asset.
3)Gains from a decreasing strip ratio from 4.8 to the average LOM at 3.3
4)Gains from a decrease in ore loss and dilution as the get better with time.
5)And finally, I would suggest that there is potential to incorporate Blue Spec and Felix prior to underground mining at WGP. A blend of this higher-grade ore with the current < 1g/t will increase gold production, increase recovery rate, decrease the AISC, reduce and defer the capex required for underground mining, and it will potentially eradicate the need for a capex driven capital raise.
I will cut and paste comments by DR in the quarterly.
·Steady state operations resulted in positive operatingcashflow generation in December month.
·Positive cashflow and steady state operations nowprovide a clear pathway to increasing production to 130,000 ounces pa.
·Commercial production was declared in January 2023following the commencement of steady state operations. Positive net operatingcashflow is expected in the March 2023 quarter.·Positive net operating cashflow is expected in theMarch 2023 quarter hence operating costs are expected to be funded from goldsales.
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