The quoted section (bottom) from the quarterly brings some interesting possibilities.
Current optimal capacity on one shift is ~50tpd that has been often quoted.
Now assuming they described upgrade to winder speed/capacity is accomplished I would think we should get at least something like 3-5 times the current capacity or whats the point in doing it.
Lets say they get 4* the haulage (across two shifts) that?s 200 tonnes per day.
Current plant capacity is quoted at 8-10tph so the upgrade would fully use the plant capacity on a 24hr basis allowing for some downtime.
The really interesting time for MCO comes IMO, assuming the upgrade is completed over the next quarter or so, that should coincide with the plant chewing through the development stockpile and the increased capacity would be used to haul out Maxwells, Burns etc prime ore which I would be surprised if it would not avg ~20gpt +
Suddenly the market will see that MCO have an 60-80ktpa plant, with ~20gpt ore with what will probably be close to $1000 aud oz margin?.. that?s somewhere in the vicinity of $40-50mill p/a.
There are a fair few assumption in here, but none of them too far fetched I think.
From the Quarterly "Additionally, haulage rates are being reviewed along with an increase of shaft winder speed, as well as haulage capacity (inclusion of a skip) and replacing existing trucks with side tippers. Preliminary calculations show that with proper shaft rehabilitation, winder upgrading and use of the second shaft compartment for haulage, production can be significantly upgraded via the shaft. The haulage review is expected to be completed in H2 2010."
MCO Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
