Last chance to get set …, page-18

The half year accounts are pretty meaningless - not saying they are wrong. The fact is that these accounts represent a period when there was enormous volatility due to plant commissioning issues and poor grade reconciliation. To be meaningful you have to look forward (not at history - the half year accounts) and appreciate:
- plant throughput problems have been largely fixed and should be up to nameplate capacity
- grade reconciliation is still an issue but have been identified as parameters taken from other operations as converson factors between resources and reserves (there is always a loss here but industry parameters are not always a good guide). Current revised guidance is based upon real life experience from current operations (this is the best source). I would guess this will result in a reserve grade revision which is recognized in current guidance. Sand King is a higher resource grade than Missouri and Riverina; so even with reduced (actual) resource/reserve dilution factors we should (in FY23 and also ongoing to EOY) be getting higher head grades to the mill in future and higher production (and thus lower AISC).


You can be sure that Hawkes Point have been through their numbers with a fine tooth comb - you have to look forward not backward (as in the half year accounts) to look at the prospects - they are not a conventional (and established) company producing widgets. IMO the half year accounts a pretty meaningless