Anyone got a feel as to what Big Bell could do to the Cue operations AISC? The impact of grade will no doubt be positive but I’m interested in what it will do to opex on a cost per tonne basis..
Fortnum for example was able to reduce its cost per tonne mining cost to $52 this quarter with a move to bulk stoping which brought their AISC down to a very healthy A$1,112/oz. You would think given big bell is a much larger (1mtpa) sub level caving operation that they could do similar costs around that $50/t mark or better. Three larger SLC operations below seem to be averaging A$20-A$30/t, two of those are feasibility numbers though and are yet to be delivered.
If Big Bell can come in around that A$50/t mark I could see Cue dropping a couple hundred $ off their AISC - so potentially WGX could do circa 280kozpa @ A$1,250/oz AISC for over A$300m in FCF at current POG. EV/cash flow of 3x is cheap IMO relative to what some of the other mid tiers are trading at...
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