on the point of whether MCO will become cashflow positive from mining at the Maxwell project is a certainty i reckon. as has been pointed out by a few posters recently, the Grade Factor holds the answer.
as we all know, in the last quarterly the co. stated that the Maxwell Reef contains an average grade exceeding 12 grams per tonne Au (page 9), & goes on to say that they believe they has been conservative in assessing the likely mineable head grade and the overall economic viability of the project.
i suppose the big poser atm is what the grade factor will be for the maxwell reef. a real tantalising question. looking over some past production grades (on page 12) of the last quarterly it lists :
Archilles grade factor : 250% - 450%
Exeter " " : 270% - 490%
Lancaster " " : 600%
Stirling " " : 360% - 650%
Campbells " " : 900%
Whitelaws " " : 1100%
Burns " " : 1200%
so, when the Maxwell reef has been totally extracted, over the course of time, will the grade factor go into the record as being a factor of 200% - 400% - 600% - 900% - 1200% ???
whatever the recovered grade ends up at i reckon MCO are on the positive side of the cashflow ledger.
