I’d like to add with all the crap they threw in the mill in...

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meric

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07/05/18

21:50

Post #: 32940238
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Originally posted by LT_Investor ↑

Read the March quarter report couple of times the infornation below is very useful. High ASIC costs for the March quarter was due to high stripping costs.
With the preparation stripping activities already taking place at the Urucum pit since July 2017, this will consistently feeding the new upgraded plant to produce high recovery rate.
For a new gold investor like me, i done some research on different type of ores and the sulphite ores requires much more grind works etc hence the plent requires $27m upgrade. Why the plant didnt get upgrade 2-3 years prior is out of my concern. I am focusing on the current and future business.

Below is the extract:
"...the addition of the second
mining contractor in July 2017 and a focus on waste stripping campaigns at the predominantly sulphide
Urucum pit in preparation for completion of the plant upgrade in mid-2018 and Tap C pits.
Total mined has been above planned for the quarter in both Urucum and Tap C mining areas, which has offset
the lower than planned production in Tap AB. Additional mining fleet will arrive in April and May to assist
with increasing the production in the Tap AB Pit to make up the shortfall.
The mine will transition from predominately oxide to sulphide ore in the September and December 2018
quarters concurrent with completion of the Tucano plant upgrade. The mining team has a focus on improving
mine planning efficiencies to ensure an optimised material blend is sent to the mill."

Financially they have $10.9m left, with additional $23m and the new payment from Golden Harpe should be sufficient by the end of this year.
I best guess is that total ASIC costs for the next three quarters would be similar to Dec 17 quarter.
I dont have all the information to break down all the operational costs so if any can share their research would be great.
Thanks

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I’d like to add with all the crap they threw in the mill in March quarter, gold mining cash flows were breakeven - if not for spending another $9.5m on the mill we would still have $20m in the bank.

I don’t think that’s worth a 70% price decline since January.

BDR Price at posting: 6.9¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

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