News: NWH NRW Holdings To Support Gascoyne Resources With $12 Mln Loan Facility, page-18

Hello Steady_183.
As I understand it AISC isn’t officially calculated until commercial production is achieved .
That is expected to be this quarter according to the update on December 24 and also the presentation at the Precious Metals Symposium in October 2018.
In both reports GCY predicts AISC of $1259-$1350 an oz (noting current AISC calculations are based on initial higher estimates for the first two years as strip ratio costs are anticipated to be double in the first two years
https://www.gascoyneresources.com.a...-Metals-Investment-Symposium-Presentation.pdf




Beyond this, Dalgaranga has been fraught with a number of issues during start up including machinery delays , mill issues, bad weather and grades being less than was expected as well as cap rock being harder than expected...( all these things mentioned on Gascoyne forum ) .
Plus significant debt ... ( $61.1 million increased to $72.5 million according to @xdfeng on GCY thread on September quarterly {BEFORE the NRW loan,} and with a final tenement payment of $4 million due in December quarter ..https://hotcopper.com.au/threads/an...es-and-cash-flow-report.4510333/#.XCHGJRo_Xmo)

It has been a hard start .
Potentially there may have been labour issues as well as there has been a constant stream of jobs advertised on Seek for Dalgaranga.
Possibly there were management problems too given resignation this year of a director, the CFO/joint secretary , the CEO and then before he had even been on board two weeks, the new non executive chairman, Ian Murray, https://thewest.com.au/business/min...e-resources-shares-in-tailspin-ng-b881004816z



BUT we have been in there working with the Gascoyne bunch since long before we got the contract and in any planning exercise it is good to know the problems one is likely to encounter along the way?
I think our guys pretty well have a grip on things out there by now ..on ALL aspects including the weather !

And it could be the Christmas champagne, and it was bound to happen anyway I guess as I am a bit biased towards NRW, but I am coming around to the idea NRW stepping in to support Gascoyne is going to turn out very well for everyone.
Dalgaranga is not anything more at this stage than a ‘sow’s ear’ of a mine but it’s also a mine at the beginning of it’s life with strong intimations of better things to come - better grades , increased life, even a second mine down the track at Glenburgh.
Plus gold price increasing .
Plus, whether we lent the money due to being backed into a corner or not, the fact is Gascoyne was in clear danger of going under without it and NRW has spent on capex here with a view to the long term . It is in shareholders’ interests they pull things together.


And we are better placed than anyone to know if we can pull it around.

“NRW have worked closely with Gascoyne Resources on the Dalgaranga project to support operational priorities. The project teams are working closely together to ensure all aspects of the Dalgaranga project are focused on delivering a successful outcome.”

.And the loan is relatively small ... just a temporary working capital arrangement that will (already!) be reduced to $10.4 million next Monday.

Cheers