So, taking a step back a little, now that we see the plan unfolding what will this mean for MCO cashflow and shareprice over the next 6 to 12 months?
Taking for granted that all the scenario's will likely take longer than thought, here's my base case.
Gravity plant comissioned by end of March next year to produce at 10tph.
Looking at the discussed ~3000t in stockpiles, thats taken ~ 2 months to accumulate with 1 shift
3000t / 60days = 50t/d with one shift.
I think it may be a while until 2 shifts are possible, getting the right supervisory staff and H&S protocols in place to move to 24*7 operation is a big step that I think would be possible by mid next year.
I think with steamling of UG processes with one shift, lets say 60 t/d was possible.
Say we have 5 months till plant is commissioned Oct-March
140 days (allow xmas/new year break) * 60t/d = 8400t on the ROM + the existing 3000 = 11,400t
If we have a conservative head grade of 13g/t
11,400 * 13g = 148200g Au, = 5200 oz's
@$1100 aud = $5,720,000 less mining costs
So we're talking another 5.7 million to MCO plus the ~12mill opts conversion at around the same time.
No hurry to toll treat IMO, just get the plant in and working right!
Key's for next year IMO, are starting the Decline via the Adit and moving to a 2 shift Roster to maximise the tonage via the shaft.
Comments welcome
MCO Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
