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clock Created with Sketch. 10/11/22
04:46
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Originally posted by Mentalist123:
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Opaldigger, mate have a lookAt Gascoyne Resources, which just closed yesterday 2.4million tonne per annum Gold plant in WA. They did all the PFS and DFS and still couldn’t make it work. Mining is about people who are experienced to operate a gold mine and it’s about the gold grade and ore: waste strip ratio and men who have the metallurgical skills to operate and manage a processing plant. If the grade is good and the metallurgy is good and the waste/ore strip is good and the gold price is good you don’t need a $2m DFS to tellyou whether you can make money or not. I read the Scoping Study by TBA and had an analyst look at it. Because the mining was imminent and was to start immediately and used the immediate costs and the gold price was immediate there was no need for prolonging start up for another 6 months. He said you can spend $2-$5m on a DFS depending on the size if the project, if the gold price or any metal price of other major material factors arise it’s not worth the paper it’s written on. A case in question: Gascoyne had to shut down because of: abnormally high rainfall, labor shortages, and the ongoing impact of Covid. now announce plant shut and on care and maintenance yesterday. DFS out the window. These variables are not in a DFS. So how did this help them.? if you buy a house do you do a DFS? If you do, how is it looking when the interest rates go from 2% to 9% or a flood puts your house underwater? I don’t think that is the reason for buyers ignoring TBA it’s because to date they have never met a single milestone. I also think that if the company spent $5m a month for the last 3 months $16m on mining, so how in gods hell, can they operate for the next 3 months with only $3.45m just raised? I think that is the $10 question and what the problem really is. I was hoping that we could have cranked up the GAM by now which would support and finance ongoing costs. But if we are not cranking the plant up this week then maybe a problem for TBA operating as a “ going concern “possibility? Be good if the MD came out and reassured us, shareholders, that it is possible to extend payments to creditors to allow creditors payments until after gold processing starts. I can’t see any other way forward. I’m just hoping the Mine Manager was telling the truth that he is truly delivering 5,000 tonnes of ore every week. Why can’t the MD tell us that.? Also, we need to hear how the MD is going to manage the next 3 months with $3.45m plus a possible extra $1m from the SPP, when we spent $16m in the last three months. Now I’m really stressed. We need reassurance. We seem to be a sailing boat without wind, just as I was getting excited. Has anyone get any ideas?
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Once upon a time there was another company operating out of Cloncurry. The shareholders paid the money for a DFS but the outcome wasnt good, so management, who knew better than southern dickheads and Perth naysayers, slipped it into the bottom drawer and didn't reveal the outcome to shareholders who went on to take a ca, $500m haircut when the project turned out to be the lemon that the sceptics had known all along. Coincidence, or is there a common thread here?
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