mining calculations - where is the gold?, page-2

Excellent post jumpstart. U point out that they have a thin cash buffer of only A$1.1M which is a little incorrect as they are finally mining gold ore. Assuming 5,500-6,000 ozs per qtr @ A$1,337 (to-days price) = A$7,335,040 -8,022,000 gives them a better cash cushion for a small scale operation pulling 22,000-24,000 ozs per annum. So they are marginally profitable on a cash basis (excluding wear and tear and depreciation).

The ore grades seem to be coming in lower than anticipated probably because the mineralized systems, pinch and swell within the ore blocks with the emphasis on "pich" or thin. I guess this can be classified as an achievement of sorts. So u need to hope that they hit some rich "bonanza" patches to drive up the gold yield. IMHO this is now turning into a marginal profitable (cash basis) small scale mine.