ann: trial mining update, page-27

Cashed, the forecast cash flows are being discussed are not comparable. Nor are cash costs.
For PXG, from its latest ann;
“The development, which will occur under Phoenix management, will deliver near term total net cash flow to the Company in excess of
A$3 million, based on a gold price of A$1,350/oz. The project requires minimal start-up capital costs and has total cash costs of $981
/oz of gold recovered.
Compare that to the $50mill cash flow expected from GH alone and the cash costs of $383 for OP estimated in the scoping study (excluding GH). Also compare the $3mill for PXG’s Blue funnel to the $257mill cash flow estimated for OP in its scoping study (excluding GH and based on the much smaller jorc resource only). OK, we need to allow for a lower POG since the scoping study but that might be fully offset by the larger resource including the GH. Compare the $257 mill cash flow to our mc at much less than half the cash flow estimate.
There is no comparison with PXG until they can fund their larger but low grade project. Who knows if that will have any decent margin and what will it cost to bring into production? You may want to correct me on anything I am missing as I haven’t followed PXG anywhere near as closely as ABU.