I am interested in your thoughts on whether low grade high cost production is done when gold prices are higher and then do the higher grade lower cost production when the process fall back then, there for attempting to maintain a consistent margin across the timeline keep the company trading?
Not knowing too much about the actual site specific targets when mining, I would thought you would do a blend of both to maximise profits and then reinvest profits.
I only ask this, as it seems that since Metals X having locked in some forward hedge at $1620 it feels as though they have a bit of margin to experiment with lower grade higher cost targets??? (From their report:
The overall grade re ects a combination of the decision to process all low grade ore produced on a continuous basis through the plant as opposed to only the high grade open pit ores.)
Whats; best practice or what would evolution or northern star do?
MLX Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)