Overall costs are not going down and if they did that would be a miracle at this stage of the mine. Saying that costs such as sales realisation costs are out off managements hands. I wonder if RVR have any option as increasing a cost by three fold in a quarter is not cool. There is always a flip side and that is producers who are marginal cant cop that and stop producing thus more pressure on stockpile.
However productivity is skyrocketing and that is most evident by the recoveries being reported ( particularly silver ). From the reports it is very difficult to see which areas are outperforming. This then reduces the cost per unit and is reported as cost reduction, ie C1 costs. I would think management know where the bug bears are and are concentrating on the areas of most reward
I would also be very supprise if West 45 closes any time soon. I would expect some serious intellectual scoping and then drilling Champaign from downstairs to find what else may be lurking there. The mine has all infrastructure and continuing mining more expensive ore (deeper, thinner) although less profitable can extend mine life cheaply in terms of capital.
RVR Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
