cheers for the detailed reply
You make a fair point about other stocks disappointing due a range off issues (aka GCY, BLK, PNR etc).
However as you mentioned earlier, what caught my eye early on was managements openness, something which should be a given considering how much these gentlemen are getting paid, but... seems to actually be as rare as hens teeth!
Fair point about the upgrade and the sulfides, and needing to prove to the market that this is a real step change in their production profile, although from what I have read about the companies involved in the upgrade, they are the best on offer.
Good to know that you were buying at the same price as me! I am really hopeful that they actually beat their 25k guidance. Especially when they have explained to the market that they were able to produce 540 ounces in one day on August 30, and plan to be producing around 400 ounces per day going forward to ensure they are producing at 100,000+ p.a. Although I note, that even if the plant is only available 90% of the time, 400 x 328 x0.85 (recovery rate) = 112k.
The MD states that this rate should be achievable for the next 9-12 months without any further additions/alterations to the mine plan (I am paraphrasing from the Sept presentation at Denver).
No worries about MOY M&A plans. Just checking. Perhaps in time I will do some speculating.
Very much agree with you about the plant and its operating capacity. 1.5mtpa base, but running at 2mtpa. Very good effort. As for the low grade, most of what MOY has resource wise is at least 1.2g/t, which means without any U/G ore, it can produce around 77k p.a (as its been doing).
As you say though, with some U/G ore, perhaps 250,000-400,000 enables them to produce around 36,000-55,000 and a further 60k from the open pits. Giving them their 100,000 run rate.
Golden Eagle is the key. Close to the plant, and at one stage, held approx 800k in resources. Right now, its about 300k, but... they are already finding new gold there.
I actually think that the next 4 quarters will see AISC below $1200 AUD, consistently. Big call, but then, the company has basically stated that they are going to produce 100k in 2019.
RMS - very good point about their recent drill results, although, Vivien has to date, not provided any further results. Well done on your entry with RMS. They have had a decent rise from the lows already.
SLR. Agree with you. DRM is a strange fit, but perhaps because its so safe they are happy to do it....
Also, Since RMS got a plant, SLR is now lagging behind them. ha.
Good luck with your portfolio in 2019 as well.
MOY Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
