no better time to buy?, page-31

"if they increase the pit size , ounces & the grade increases in the next scoping study on old pirate. Is it fair to think the cost of pulling that out of the ground will fall below the $511 figure quoted in may?"

Allday the average grade of the in pit resource might not increase if the pit is widened and deepened.
The cash costs per ounce might rise or fall a little.
We can only guess for now- if we were just increasing the pit to include the East vein then the extra cost of mining waste between the East vein and the jorc could push cash costs a little higher. However because it will also deepen the pit and include high grade ore below the current pit model, then that might fully compensate.
What is known is that the economics of the ounces in the original pit design do not change if you then go on to widen and deepen the pit, and contained ounces will increase significantly in the extended pit.
So regardless of what the cash costs are for the gold in the extended pit, they will be profitable (or you wouldn’t bother) and add to overall net cash flow and profit, improving the total cash flow regardless of whether the total average cash costs are higher or lower as a result of increasing the size of the pit.

Gerwoo, the $257mill cashflow (net of capex) was based on 308,000oz (not 450koz) of the 565,000oz uncut jorc resource.
That is only 54% of the initial jorc resource.
If around 60% of the remaining jorc resource is recovered through a combination of extending the pit and/or underground mining then there is clear potential to add another $100mill and that is allowing for higher cash costs on that part of the resource. Cash costs might be higher through u/g mining but then you might recover more like 80% of remaining resources and your extra cash flow could be closer to $150mill.
That does not factor in the extra ounces of the Eastern vein and the other two smaller veins between the jorc and the East vein, or any other veins discovered this year.
It also does not allow for the Golden Hind which looks like its going to be very high grade and very profitable satelite pit.
The $257mill could be upgraded to $400mill just on what has been found to date.
What if the whole system goes down to double or triple the current depth?

There is plenty of upside to the original $257mill cash flow on the jorc and on what has been discovered over the last few months and then the whole system is still open at surface and importantly at depth. There is still not enough in the sp to factor in the value estimated by the scoping study just on the jorc let alone the very large upside potential. I think we will see at least 10c this year or next.