looking backwards here is a waste of time. Any analyst who...

looking backwards here is a waste of time. Any analyst who extrapolates from past cash cost figures is an analyst worth ignoring... in fact Ross Beaty, one of the great mining entrepreurs said recently

"Nobody believes the analysts these days. They’re suffering a credibility problem"

Read the link below to see what else he said

SLR hasn't even bed down its new strategy of dealing with multiple ore bodies, within which there are underground/openpit scenarios, and within which there are a variety of stoping techniques which can be switched on and off at any time . On top of that there are mill expansion possiblities, multiple high grade exploration opportunities, base metal credit opportunties.

and on top of that is the true elephant in the room. WA labour costs. Labour is around 50% of all in cost. WA labour costs are sky high, a skilled airleg miner can command $250k pa FIFO, dumptruck drivers on FIFO with a few months experience are getting $50-$60 plus an hour working for a labour hire contractor who then adds his margin. This squeeze just ended and once it moderates you will see labour costs drop 20%, which will take all in cost down $100 an an ounce. Throw in further operational efficiences, higher output, and you can see another $50 come off

There are many elements to cost, grade, management skill, open pit strip ratios, dilution of narrow veins in selective mining... only the indsiders really understand these costs and how to address them. No analyst is capable, esp in an outfit like SLR.


http://ceo.ca/ross-beaty/