1. Red circle #1 - does this mean grade was mostly in line with estimates, but ounces were not? Meaning, they were not intending to use so much stockpiles, but they ended up doing so. So the stockpiles had a grade as expected, but the higher than planned use of stockpiles meant missing the ounces target? Or am I missing what 'grade' and 'ounces' represent? Higher stockpiles usage likely due to: low stoping, or quick ramp-up of the plant. 2. Red circle #2 - the capital raising issue was literally only known in the month of March. The CEO having to rush back, I assume, was due to the surprise misses in March and thus breaking banking covenants, then quickly having to discuss it with the bank (which turned into a raising and adjusting the hedges).
Jan and Feb were tracking according to plan. So they weren't hiding the issue all quarter, but only realised it at some point in March.
3 stopes at some point in March were weak. Combined with mining issues, like excess dilution.
Those 2 points changed the grade from 5.6g/t to 3.5g/t (38% less revenue aka a huge amount of margin).
That looks to be 'for the month of March', so it could be used to infer the Jan-Feb grade too. Compare the full quarter's grade to the 3.5g/t in March.
If we're past the edge of the orebody, and stopes are back to normal, then that would be +1g/t to grade. If the mining issues get fixed, than that's also +1g/t to grade.
BGL Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
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