The planned re-line of the SAG mill was announced in the June quarterly, ie:
"During the second half of the 2014/2015 financial year, it is planned to replace the internal liners of the SAG mill with a new design, which is expected to further increase gold recovery".
No need for them to keep repeating it! I imagine they will schedule it in during the 33% capacity upgrade to the L8 shaft.
And it's not because it is 'damaged' (as you state) - just a re-line, something that happens on a regular basis with grinding mills.
I also have to challenge your (and chuk's) inference that the US$3.4m was 'sustaining capital'. It quite clearly states:
"US$3.4m on capital works, associated sustaining capital at the mine and mill and infrastructure"
They charge all maintenance and repairs within the reporting period to cost of sales and have historically capitalised c. 100% of plant and equipment outlays, obviously because of the future benefits to be obtained!
As for development. Over FY14 they expensed US$45.318m (as shown in cash flow statement) yet only capitalised US$36.329m. The difference (US$8.989m) was presumably expensed as a sustaining cost of the period and represents a cost of c. US$136/oz sold.
On the subject of AISC. If one adds up the components, ie:
Cost of sales less D&A = $25.265m
G&A = $8.265m
Exp & Eval = $0.107m
Sustaining development = $8.989m
The total ($42.626m) equates to a cost/sold oz of US$646
In the same way, FY13 was US$607/oz and FY12 was US$716/oz.
Incidentally, D&A at US$17.541m equated to US$266/oz over FY14. It often operates as a reasonable proxy to bridge the gap between cash costs and AISC.
CPDLC
MML Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
(20min delay)