SUM 2.78% 17.5¢ summit minerals limited

SUM - Under the radar, page-6

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    Some SUM detail, letsgo2-
    PRODUCTION GUIDANCE UPDATE: DECEMBER 2017 Merdeka Copper and Gold (IDX: MDKA)
    Page 1 of 2 PT Merdeka Copper Gold Tbk (“the Company”) is pleased to provide the following update on its guidance for the current year at its Tujuh Bukit Gold Mine located in Banyuwangi Regency, East Java, Indonesia.
    Key points:
    1. Full year gold production guidance for FY18 increased to 135,000 to 145,000 ounces
    2. Full year AISC guidance for FY18 reduced to US$ 425 to US$ 475/oz
    Due to continuing strong operating performance and positive gold grade reconciliation, full year production for 2017 at the Tujuh Bukit Gold Mine is expected to exceed previous guidance of 110-120k oz materially.
    Guidance is therefore upgraded to between 135,000 and 145,000 oz of gold.
    All in sustaining cost guidance is therefore reduced accordingly due to the increased volume of gold produced.

    Merdeka is closely associated with SUM, but is, I think, a heap leach operation, whereas SUM is conventional open pit and underground gold mining in Sumatra. Kinda apples and pears.
    However, Merdeka have some $42 million in cash and bullion; they're propping up SUM, and are financing exploration at and around SUM's mines. Imo, Merdeka effectively own SUM. Merdeka is listed on the Indonesian stock exchange, and SUM is listed on the ASX. I've no idea, but this arrangement may be of benefit to both parties. Whatever, SUM has a big Indonesian buddy, and has recently announced a production increase; so, as with Medeka, their AISC should be reducing.
    (As ever, please DYOR).
 
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