Reality / Fact:
Original mine plan envisaged production at up to 250 koz
Reality / Fact:
Updated mine plan drops this to 170 koz based on an average grade of 1.04 grams per t
Reality / Fact:
Average monthly production rate is less than the record in Dec-23
Reality / Fact:
We have a wet season approaching in July which lasts till October which will see 3rd quarter production impacted
Reality / Fact:
The company has failed to settle to remaining debt and has deferred settlement to June-24
Reality / Fact:
Record gold price (which Tietto doesn't influence or control) is the only thing saving us
Your posts remind me of these guys clapping in the background:
I hold and continue to hold, but I'm not blinded by the fact that this quarter was disappointing. In Matt's own words:
“
Tietto produced a record 37,111oz gold at Abujar in the March quarter as we continue to move towards full production"
We know the mill is working at over its planned output, we know that with the augmentation of contracted mining fleet (additional excavators) that mining is exceeding milling. The issue is grade grade grade and then grade. The alternatives are:
1. Tietto starts hitting the higher grade material as the pit goes lower (unlikely);
2. Tietto starts mining from a satellite pit with a higher grade (more likely);
3. Tietto increases capex to allow additional mill feed and process out of the facility (foreshadowed: likely).
