mining costs

The reason mining costs have been elevated in recent times is that the costs of mining and waste include:

1/ Re-handling material for construction of drains, roads etc
2/ Quarrying of material from nearby for road improvement during adverse weather
3/ Moving of silt and other difficult material
4/ Moving material as the pit condition was poor
5/ General low productivity as mining activity was just restarted after the closure

All of these factors have improved and will continue to improve moving forward. It is not reasonable to expect costs to start really low just after a restart.

I have no concerns at all regarding the mining costs and general trend on that front. To see a major decline will require owner operator mining or a re-fresh of the mining contract. Depending on the new mine plan, either of these are possible.

I'd suggest mining costs are not the risk, but the ultimate strip ratio is something to be more concerned about.