I understand this to be the cost of waste removal in respect of ore yet to be mined. The costs are capitalised now as an asset which depreciates as the ore is mined.
On a different note, the March quarter in 2017 was a disaster in terms of the mining operation. This year the March quarter is also a disaster with a 9% decrease in headgrade and an 8% decrease in gold recovered by comparison. In fact, this is the worst March quarter of gold production in BDRs history.
Large volumes of fresh ore continuing to be delivered to the plant and record ROM stockpiles is what was promised in the announcement at the end of December. Instead, the company delivered the worst March quarter of gold production since Tucano was commissioned.
Sorry to bring the mood down, but I just cant see the glass half full.
BDR Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
