What will they do with all the free cashflow, page-26

Great find ST.
So interesting to hear the MDs views on why EGS failed (basically, ran out of money, but... that in turn occurred, because they had no reserves.... no mine plan...! Crazy really- my summary - EGS just rushed in, started digging dirt, spent a heap on the plant, then realized they could not fill the plant quick enough with ore).

He mentioned that Golden Eagle was providing up to 20k tonnes per month, to the plant, which is interesting, as that means they are filling the plant with up to (20k x 3.8g/t *.92 (recovery rate) 2250 ounces per month). So, it will give them feed for around 7 months, based on the current reserve of 16k.
It would be a really great outcome if OBM is able to squeeze more ounces out of Golden Eagle early on, just to supplement the open pit ore.

Riverina of course, producing 80k tonnes to fill the plant.

Combined feed grade into the plant currently, is 2.2/2.3g/t which, if accurate, is an excellent outcome so early on in the ramp up (especially, as the reserve average is 2.4g/t). i.e 100k x 2.2 x 0.92% = 6500 ounces per month, which could potentially, see them get close to their 35k target for the first half of 2021 (though I think it will be closer to 25-30k). If recoveries get above 92%, then the doubters are going to have to look elsewhere.
DQ states that the plant has been on since late Jan, so... they are going to have the full 5 months of production, assuming no major issues occur with the plant.



This also means, that they are currently feeding the plant solely from new ore, not from the stockpile... (another big positive).



DQ also clearly states, that they expect to declare commercial production at the end of March (from an accounting perspective), so the fact it has not occurred yet, I am guessing, is because it will be announced in the Quarterly (next 2 weeks).

Also got some clarity on the debt facility.... the company, due to its past history, is paying for everything with cash, upfront, to suppliers etc. The facility, will hopefully be the begging on the company being able to normalize its trading payments etc going forward. Though I am sure, having the ability to hedge some gold is also a reason. DQ said the $15m was the smallest amount they could get! ha.

Exploration discussion was also very interesting. Lion South likely to be added to the mine plan. Big focus on Iguana too (not JORC compliant yet)....
He said that in the future, he would like to be spending $10-20m p.a on exploration! That is RMS/SLR sized.....

I can confirm that DQ mentioned that with the right feed mix, the plant could produce at 110% or, 1.3mtpa. Though DQ focused more on increasing the grade. He mentioned, for example, a target to higher grade of around 3g/t.

A great interview, with a very canid, MD speaking. Not sure if its on OBMs website, but it should be.

Sort of kicking myself for selling a few not so long ago, but... I had a simple plan, free carry before the first pour, as I have had dreadful outcomes in the past with developers (GCY, DCN etc...).