just some doodles

Just dug abit deeper on the AIM announcement re the Bankable Feasibility Study.

A question on reserves? Their quoted resource is 6.72mt, yet the claimed mineble tonnage is 6.271mt, ie a 93% conversion rate! That is outrageous by industry standards (HER is 79%, LAF is 73% as examples).

In the resource category, AIM has 6.3% only in the measured category, whilst HER has 67.5% and LAF (being open cut and shallower,ie cheaper to drill out) is 91%!!! AIM may rectify the percentage through infill drilling but this comes at a cost. In the meantime no Australian financier would go near it for what it is worth as the confidence in the mineable reserve is in question.

Cost per pound given by AIM of only 18 cents after credits. That is less than half the industry norm which is in the range of 30-45 cents. (HER suggests 31 cents but those estimates are a bit out of date and fuel prices/labour costs would have gone up for example).

Then I note Flory pocketed $400,000 last year and his offsider a further $320,000. Nice work if you can get it!LOL

Cheers,TAS