I'd be cautious. From the Dec quarterly (14/2/2018) the estimated expenditure for March quarter was $7.9 million. Positively impacting on this would be reduced production and wages costs due to the closure of the mill while the new gearbox was fitted, and the trucking of some ore from Union Hill (5k distance) instead of A1 (300 k distance). No doubt expenditure could be contained to be less than $7.5 million leaving a profit of $0.5 million. Execs though have a habit of spending as the money flows though in this case, there is a need to have $2.5 mil in the bank pretty soon. The good news is the latest pour figures. Even at the low end of 406 oz/week (based on the average for the last 7 weeks) x 13 = 5278 oz for the quarter, x $1700 = $9 mil. Can easily see a $1.5 mil profit for the next quarter, added to end Dec cash ($600,000) and profit for March quarter I've estimated at $500,000 as above, and the debt is pretty much gone. So in the March quarterly, I'm looking for cost containment (sub $7.5 mil) and cash in hand of $1 mil +, along with a notice of production figures averaging greater than 406 oz/week for the start of the June quarter. Ideally accompanying this would be some increase in grade being milled since this has been a company goal on which future success rests.
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