An increase in grade will make significantly more difference to lowering the AISC than any cost cutting around the fringes. A large portion of the costs are the mining contractor, fuel and reagents and they aren’t going to slash their costs and do the same work or provide the same amount of goods. Saving 5% would be a great result but I don’t believe likely.
500kt throughput per quarter, an average feed grade of 1.5g/t and a recovery of 80% is required as a minimum and likely better is needed due to loan repayments. Only one of these parameters have been hit in three of the last four quarters and in the other, two were hit.
I keep looking for green shoots but not seeing any as yet.
BLK Price at posting:
0.8¢ Sentiment: Sell Disclosure: Not Held
