http://www.openbriefing.com/OB/Aurelia-Metals-Limited/2020/4/8/Aurelia-Metals-Operating-Update/3759.aspx
Open briefing given by Dan Clifford a couple of days age. Goes about 33 minutes but well worth the time.
Main points:
Upgrade to Peak plant on time and budget. Commissioning went well and used low grade Zn, Pb and Cu ore to optimise the plant. The plant now has a lot more flexibility and can draw ore from 7 areas whereas the plant could only process ore from 3 areas previously.
Peak shaft problems. Shaft out of commission for 9 days and ore grade at the time was 4 to 5 g/t of gold. One of major reasons gold production was down in quarter.
Corona19 Problem with staff coming from interstate/overseas. Also, staff with cold symptoms advised to stay away from work. Bottom line was that around 8 to 12 workers missing from each shift in early days. This has now stabilised to around 4 to 6. Also social distancing now means that workers have to be broken up into small groups and it takes twice as long to get workers underground. Another reason production lower in quarter.
"stunning results" from Federation. To be fast tracked. Resource be mid year.
Working capital facility from banks close to being approved.
There will be a quarterly conference call when the numbers are released later this month, which will give a production guide for year and costs and enable analysts/shareholders to ask questions.
Exploration budget cut at present to preserve cash during the Carona19 period. Priority to Federation and around Peak mine.
Lots of rain at Cobar and dams filling.
During Q and A an analyst asked if the Peak gold grades would remain around 4 to 5 g/t gold in the current quarter. The answer was that the Peak was in a higher grade mining zone and the gold grades would probably be slightly under those levels for the current quarter.
My take on above:
Unusual for companies to describe drilling results as stunning. It seems clear that Federation will be fast tracked with production. Maybe a mining engineer can answer that question.
Surprised working capital facility being arranged considering cash on hand. I suppose best to be prepared during the Corona19 period where anything can happen. However, i am of the view the company is setting itself to for corporate action and the company will look a lot different in 12 months time.
Ongoing Carona19 problems will limit production somewhat in June quarter. However, gold grade for June quarter looks good.
Was a bit surprised the shaft problem would have affected production. Would have thought that the would have had ore on the surface that could have been fed into the plant.
Good that they will have a conference call with the release of the quarterly numbers. Will give shareholders a chance to ask questions.
All in all happy with progress. The June Q should be a reasonable and AMI will hit it's straps in the Sep Q Corona19 virus permitting.
http://www.openbriefing.com/OB/Aurelia-Metals-Limited/2020/4/8/Au...
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