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06/02/20
12:30
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loki
Below is the cash cost section for the Sulphide UG copied from the last Qtly. There were no processing costs included - they obviously processed something?.......... Why is the Mining cost so high? If you aren't processing ore should it not be accounted for in a stockpile adjustment. I would expect the stockpile adjustment be a negative but it's a massive positive - I really don't understand this adjustment??? ..They added massive costs from stockpiles despite processing costs of zero and adding to the ROM pad all Qtr....... Are they front loading the costs to make next Qtrs AISC look so much better??? ....In other words, December was always going to be bad why not add some costs to make next qtr look better.
The overriding point is, I have absolutely no idea what the AISC will be. To the end of the June Qtr costs were pushed to the balance sheet as development costs. Since then, the roaster and maintenance issues make the picture even muddier.
For me the AISC is so manipulated it is irrelevant. When we can see a few qtrs of steady production and determine some sort of trend it may have some value. It all rests with the financial statements. How have the loan balances and Accounts Payable balances moved.......The auditors won't let them manipulate these too much.
I agree there is less need to worry regarding the loan position, but I'm not sure the operation is as profitable, or stable, as most would like it to be. Risk for me is to the downside until this is clarified.
Cheers
W
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