Think you’re mad to assume a flat $70/t operating cash cost (ex royalty) in 24’… it completely ignores the key cost drivers here which is geology or more specifically strip ratio.
Koolan has been running around A$150m pa on site cash costs (ex royalty) and moving about 15Mtpa of material. In the past few years this has been at a strip ratio north of 10:1 so only a tick over 1Mt of ore. You’ve now finished the heavy investment in the pushback and this mine is dialing back to around 8Mtpa of material moved with around 4Mtpa of this being ore (strip 1:1 or lower). This is going to have huge unit cost implications… and the large stockpile being liquidated will add significant cash to the balance sheet.
MGX Price at posting:
44.0¢ Sentiment: Buy Disclosure: Held
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