My understanding is the Administrators do not have any intention of resuming the underground sulphide mining at this stage.
Their plan is just to process the historical oxide stockpiles and tailings.
So based on the above tables (published in the last quarterly) The stockpile and tailings Reserve Jorc is: 30Mt @ 0.56g/t for 547koz of gold Resource Jorc is: 37Mt @ 0.59g/t for 685koz of gold
Sounds like their planned throughput rate is 1.8-2.3Mtpa.
So if we just look at the Reserve it looks like that have 15years worth of "stockpiles and tailings" to process. Double this if you include the resource.
So if we are going to process say 2Mtpa at 0.56g/t and say 85% recovery then that would be approx. 30koz pa of gold dore.
Looking back at the old quarterlies, where the CIL plant was operating, processing costs seem to be around $20/t. If we allow $25/t for the movement and processing costs of these tailings, then annual costs would be around $50M with an AISC of around $1700/oz AUD and annual revenue would be around $90M (with gold at $3000/oz AUD) . Seems possible.
So cash operating profit (with gold at $3000/oz AUD) would be approx $40M.
It makes sense why the administrators are going down this path.
WMC Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
