AISC increases were at MM mine: Costs Mount Monger’s AISC was higher quarter on quarter (Table 3) at A$1,807/oz. The increase in AISC reflects lower quarter on quarter gold sales due to the timing of gold pours at quarter end. The Q2 increase in mining costs reflects the introduction of Santa Underground costs for the first time in the AISC calculation.
Mount Monger Camp AISC 1.Costs for underground & open pit operating activities (including infill and grade control drilling). Costs allocated upon mines reaching commercial production status. 2.Processing costs include costs of haulage from mine to mill. 3.Costs relating to regional exploration are excluded from the calculation (amounting to $3.1m for Q2 FY21). 4.Costs include underground decline development and sustaining capital works, but exclude site infrastructure/set up costs of new projects. 5.Included in the calculation of all-in sustaining cost based on World Gold Council guidelines.
The contract announced this week with MAH for the underground development of deflector mine shows expansion of the mining fleet with no capital expense increase. only OPEX. Hopefully this will increase the tonnage mined and processed with higher gold outputs.
Looking forward to the next quarterly report to see the outcomes of the mining increases. Should be due an upgrade!
SLR Price at posting:
$1.53 Sentiment: Hold Disclosure: Held
