Yes, the Munda Starter Pit is funded by Jeffreys — great. But let’s not pretend that makes it profitable or competitive. The AISC is 2,635 per oz. That’s not just high, it’s among the highest AISCs of any gold mine in Australia right now.
Here’s the reality check:
• St Ives (Gold Fields) – AISC: approx. 1,800 per oz
• KCGM Super Pit (Northern Star) – AISC: approx. 1,950 per oz
• Tropicana (AngloGold/IGO) – AISC: approx. 1,304 per oz
• Higginsville (Karora Resources) – AISC: approx. 1,179 per oz
• Gruyere (Gold Road/Gold Fields) – AISC: approx. 1,431 per oz
Even penny stock Brightstar Resources (BTR) recently released an AISC estimate around 1,900 per oz for a 30,000 oz per annum operation — and that includes toll milling. So let’s not pretend Munda is a “money machine” when it’s 600 to 1,400 per oz more expensive than peers.
The company’s own numbers project 5.3 million in undiscounted cash flow from the Starter Pit, not the "10 million plus profit" you’re pulling out of thin air. That figure assumes zero delays, full grade recovery (only 83.3 percent), and no surprises on costs — in a pit with a 5-month life and a 7.6 to 1 strip ratio. That’s a glorified pilot, not a business model.
And if there are delays — which they’ve flagged as a risk — the company needs 8.3 million in working capital, nearly wiping out any margin from the small run.
Now let’s talk about this "future 150,000 oz" narrative. That’s not a reserve, it’s a resource — largely Indicated and Inferred. There’s no feasibility study, no mining proposal, no approvals, and no clear plan to convert that into production. Until there’s a DFS, it's hypothetical. Just like the "50 million per year free cash flow" you mentioned — pulled from pure assumption, based on 100,000 oz at an outrageous 2,000 per oz margin that ignores the actual cost base.
Meanwhile, companies like Westgold (WGX) and Ramelius (RMS) are producing hundreds of thousands of ounces at sub-2,000 per oz AISC, with free cash flow and dividends. That’s what a real “money machine” looks like.
Munda isn’t it.
Starter Pit is high cost, low margin, and short-lived.
The market’s not buying it — neither should investors.
AWJ Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
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