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13/02/17
10:21
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Originally posted by stevea171
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Salpetie. Re production reporting:
It is required by the ASX for gold miners to report production quarterly. It's not usual to report more frequently because production can be variable - up one week/month down the next due to grade feed changes, issues with the mill, etc. If a company were to report on production more frequently than quarterly all kinds of (wrong) inferences could be drawn by the market by extrapolation from a small sample. (Similar to election polling!)
Nevertheless BLK did report on production mid quarterly, in November just a couple of days before the AGM on 25/11. This was likely because they were still in the early stages of start up/ramp up, the market was very keen to know how production was going and they wanted to be able to give a latest position to shareholders at the AGM on 25/11.
Since then BLK has reported on 23/1. "Commercial production has been achieved and operations are now cash flow positive." Some posting here don't seem to understand what this means and think the company should be telling the market what current production is. BD has previously defined what 'commercial production' is for BLK ie
"commercial production would be producing at a rate of 8.5 k oz month (100k oz year)"
BD has also said:
"Production is likely to be higher in coming months as ramp up proceeds with higher grade feed to the mill that is expected. "Most of the Golden Age development ore mined to date (currently grading 5.0g/t) has been stockpiled for processing and as such the mill feed grade profile is expected to increase over the March quarter."
With all this information part of the public record I would not expect the company to be issuing a whole lot of new production reports before April (Q3 production report) pandering to investors who have not read or understood what the company has been saying and doing over recent months.
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Thanks for the post Steve. I agree with all of the above.
The only exception is if they failed to produce at a rate of 8,500 or more. If that is the case they have an obligation to announce to the market, especially in a scenario where directors are selling and have access to this information, which I very much doubt would be the case.
If they are on track, I am sure all holders would very much appreciate a one off announcement to put them at ease. I know I am eagerly awaiting the Jan production number.
Cheers,
Barry