WGX westgold resources limited.

I think everyone has lost the point.WGX is IMHO moving into a...

  1. 2,631 Posts.
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    I think everyone has lost the point.

    WGX is IMHO moving into a constant optimised production cash shedding mode.
    The only upside in Oz will come from keeping consistent feed without pause heading thru plants,so increased tons, the pebble crusher installation adding at least 10,% capacity and improving mill yield elsewhere from the 89 to 90% yield to say 91 % and other incremental plant refinements in blended feed and chemical savings.
    Consistent Blended feed may have a set or growing level of free milling blended content enabling greater ounces thru the same plant for example with the downplant chemical treatment side unaffected.

    Either way costs per Oz are being minimised.
    Stockpile IMHO will change to having sufficient feed to keep mills running consistent feed and grade at 2.5g , no matter what happens to the ability to mine or the grades mined naturally upping overall tons during the year.
    Weather proofing milling operations after last year's mining disruptions due to weather lack of manning and COVID.

    As to a new plant to meet these stockpiles over years to come.
    Having it in the right place is probably worth $150m cost savings over 10yrs at least.
    In today's money $100m upfront?
    Tuka is the place,not 100km away.

    Similar to NSTs dilema.Run what you have and milk it for years or build a new plant so you can expand and start mining under the old plant and lower grade stockpile area at an even greater rate.
    Stockpiles have to move first for them there.

    DYOR +DYODD what would you do with a 15yr view for sustaining total profitable operations if it was yours?
    Cut costs for one I would guess.diesel power .get more tons per employee.?
    Rightsize operating plant and buy specialist machinery for maximum yield for the least bucks in cost per oz?
    10yr plus from BB deeps at a nice steady low ton rate cheaply maybe instead of a quick expensive raping for a surge of highgrade?
    Buy a cheap milling plant and move it to the right place maybe?
    Buyout some dummy who has done it all wrong or doesn't know how to mine for clamp on ore growth ?
    Have mines ready to start at a moments notice if a mine fails/or access issues arise?
    All the signs of a NST strategy maybe....Business first? But cheap?
    Getting its own house and culture in order before the next leap?
 
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