Spot on, blasting was slowed/stopped due to covid and so they used stockpiles, which can clearly be glaeaned from the ann whichy says stockpiles have been depeletd AND the ROM cut-off grade has been reduced to 0.4g/t. There was
also a problem with blasting the right dirt/rock though. With the comment from DR at latest preso where he said "they are now trending back to normal" that indicates to me the problem is not fully fixed but getting there. So, I'm guessing it bit here, but maybe mill head grade now currently 0.9 and working back to 1.01 DFS. Sep qtr 12K oz v 22K oz full production, maybe Dec qtr gets back to 17-18oz production which would be fine by me for 2nd qtr of operations (so long as they have declared commercial production during the qtr).
Cant see any reason to CR (unless it was for an acquisition which I think would be foolish at present, even if its bargin).
1. Just raised 20M
2. Have control over use of that 20M and can pull back on a variety of fronts if needed
3. Expect Sep to be breakeven or small loss and Dec qtr to be cash positive, even if not full projected cashflow
So given Macquarie requirements with cash going into waterfall acs etc, they may not actually increase working capital, but they shouldnt drain it either.
Yes we would be trading close to Net Assets at this MC. If you valued plant/mill at today replacement value+value of tennements+Pirra JV(?)+cash at bank LESS 100K Macquarie debt, back the envelope for me says 150M. Admittedly plant replacement value is not the same as second hand market value but the point is still valid.
Good on ya mate. There is a tin play in Tas we both owned, I sold out not sure if you are still holding that, but I reckon the chance of this going back to $1 in 6 months are better than that one going to 8-9c? CAI just needs to fix a blasting problem, V*S need a total overhaul.
No finger pointing if I'm wrong though
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