I understand Seeing production increase can cause annoyance and May look like FFX had front the bill only now to have Malians reaping the rewards. Looking at the proposed recapitalisation package though, I don’t this is actually not the case even with the higher gold price.
Firstly, their 20k oz for the quarter falls behind the plan FFX outlined from just November. For them to produce 20k oz makes me believe they are still mining from viper and the superpit however at a rate of less than 10k+ oz expected
additionally, even if they were able to extract the levels FFX had proposed, FFX deemed they would still not have be cash flow positive till Q4 2023
it’s my guess that Morila is currently running as bare bones operation cutting expenses where possible.
Below are a check list of things FFX deemed necessary in order to further expand/ ramp up the mine in order to pull it up to the output promised. It would be my expectation that Morila is currently not doing these things… which is fine until they become critical. It’s my guess they are choosing to take the headache later in hopes of keeping the mine running.
So whilst yes, gold price has improve and output is increasing, It’s my belief debt is continuing to climb with a slow burn added pressure of not addressing medium term critical milestones.
I Still believe Morila will require a 3rd party investor or government intervention to stop the inevitable closing of the doors since FFX pulled the pin even if their tweets etc seem positive.
