Ann: Quarterly Activities Report March 2020, page-53

great post thanks for sharing.

it prompted me to have a bit of a further review.

At peak there is a significant cost in running the operations where we are looking at costs of ~25M per quarter excluding growth capex and this is after byproduct credits. As a result we likely need to be pumping out material at an NSR of 300 + in order to break even. Pumping out anything lower and we are losing money. What I cannot find is why operating costs have gone up so significantly since the SEP quarter At the peak operation.

looking at the latest reserve/resource review is suggested that kairos had material at the 500NSR region you mention, however we know that they use blended ore so actual material going through will be well below that number. For context Chronos had an NSR of 900 plus as per the 2018 reserve statement.

at Hera we have been told that head grade will be at a lower level going forward, and while federation looks good, you need to factor in how long it is going to take to start development/ commence mining. So I am assuming a more marginal operation at Hera in the short term.

the other item which I am not clear on is the latest cash waterfall statement in the quarterly where there is a positive working capital adjustment of 12.9M. If you take this away it makes the latest quarter even more concerning and you can understand the need to get a working capital facility sorted out.