The back log of results are slowly getting cleared.
Results look good pretty much everywhere, but... sadly, it basically going to be 100% ignored by the market, because, the company is still not producing commercially yet!
My first run through the numbers -
July and August saw them continue to feed the mill with laterite (very low grade), plus only being able to produce at 240t per hour, meant that they perhaps, were milling at a grade of 0.06-0.7g/t, which saw them produce around 6,000-7,400 ounces, but its all guess work really. I almost cannot be bothered crunching the numbers, as it basically means this quarter was a waste of time. They simply should not have turned on the plant. Full stop. They should have had all of the stripping done, so full access to the 3 oxide pits was available continuously from day one, in fact, the stockpile should have had at least 300,000t of 1g/t oxide ore stored before they started the plant. That way, you actually get close to making money straight away.
Whats done is done, I am pleased to see that they are now hitting 320t per hour, which even at just 1g/t, will see them produce just over 7,000 ounces a month. Once they hit 350t per hour, that will increase to
350 x 24 x 30 (days) x grade (1g/t) = 7,700 per month even after 95% recovery. The simply problem is they have only just recently been able to access all three pits. For the past 3 months they have been dribbling oxide, but using all their low grade stockpile that was supposed to be used at the very end of the 6 years (if ever). Sure, the mining teams will be very practiced by now and efficiencies will be in place, but it forced a capital raising at a very low share price!
The current quarterly will show a loss of perhaps $10-15m, meaning no exploration, just heads down mining. I really hope everyone is on the mine site, working hard. Add the $15m+ they wasted last quarter and there is $30m that could have been spent, just mining the dirt, and nothing else! Not paying a heap of staff to tread water with a $100m plant.
The only thing that has ensured I won't be selling, is the following statement - I am not clueless, I think the SP will dip to at least $0.25 on this. As the market is impatient.
@eshmun - I again tip my hat to you mate. Bittersweet as that is to do. sigh.
GCY Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
