Ann: Savannah Commercial Production and FY23 Guidance, page-15

Hi
I think we should note that production costs (as AISC) have blown out by a lot (based on this ann). Although this is exacerbated by the lower production rate during ramp up.
The announcement down plays this quoting a C1 cost rather than AISC.
Life of project AISC should be AUD 6.36 according to the presentation of 16/6/22.
But sustaining capital of AUD 24m comes to ~1.60$/lb. Adding this to the C1 cost ($7.30 - 8.30) gives a total AISC of $8.9 - $9.9 per lb.
That’s a concern to me and needs to come down over time. Company could be in some financial trouble if PON dropped a lot during a potential recession.
Company needs a pretty strong PON to make solid profits.

I am still holding but watching the PON. Keen to buy more if PON stabilises / rises.

Hope my numbers make sense.
GLTAH