At a guess, they’re possibly catching up on back pay. I’d rather...

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Abacoolloo

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13/02/22

18:53

Post #: 59540926
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Originally posted by Mibart: ↑

So, I had a look at the reports and from the presented numbers, it would seem there has been a change to how the mine operates. They are now mining only the high-grade resource, which is nice, but the amount of wet tonnes is miniscule. Most importantly, the costs per ton are

Production (wet tonnes @grade):
- June Qtr 53.5t @24g/t;
- Sept Qtr 16.8t @115g/t;
- Dec Qtr 22.9t @164g/t.

Mining costs (only production + admin):
- June Qtr: 300,000K (92,000K + 208,000K), 5,570K/t;
- Sept Qtr: 330,000K (105,000K + 225,000K), 19,640K/t;
- Dec Qtr: 652,000K (226,000K + 426,000K), 28,470K/t.

This is a huge increase in operation expenses and whilst I am happy to see that they produced over 3.7kgs of gold, they generate only 36,000K of oper. cash flow. That is 297K ($117AUD) per ounce of gold they sold. What is that, a 5% margin?!?

I wonder what is happening on the site? Are they collecting rocks from the selected areas with tweezers to make up the costs/grade/volume/time ratio or is there some sort of outsourcing going on there? Does anyone have a clue?

Cheers,
MiB

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At a guess, they’re possibly catching up on back pay. I’d rather they do that than scam more shares at a very depressed share price of their own doing as payment for back pay and diluting us out of existence. But it would only be a guess.

NIU Price at posting: 2.0¢ Sentiment: Sell Disclosure: Held
2 Upvote

0 Great analysis

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At a guess, they’re possibly catching up on back pay. I’d rather...

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