WGX - Valuation Analysis August 2020, page-3

Good hearing from you, Spec!

Thanks for that report! The metric they use is a bit different to the one I used but it is very reassuring to see that this AISC-based approach is being used for valuation, rather than the generic earnings or book value multiples approach that do not fit too well with mining companies.

I am actually working on a study on individual mines from the ASX-listed gold producing companies and the factors driving their costs. Based on what I have collected, the mined grade of many mines, across the sample companies are falling. The mined grade from Mount Monger is flat the last three years and down from 2015-2016. If you look at the Kalgoorlie operations (not Super Pit) belonging to Northern Star, you will see the steady decline of the ore grade being mined. With Edna May belonging to Ramelius Resources, that is rising because of the underground operations commencing, though it is more an exception to the rule.

I will publish the tables of the mines in the report, but currently awaiting a friend of mine finding time to do the deeper analysis of the data. Stay tuned for more.

Cheers,
Brian