Life of mine at expanded rates is around 12 years.
2.2MT compared to PLS 2MT compared to AJM ~1.54MT
240kt compared to 330kt compared to 220kt annual prod guidance.
Hold on until I rub my eyes those figures dont look right…………...
There is a disconnect in those figures………no?
How does AJM guide such high annual production with such low throughput or is A40 lowballing guidance? They both have similar ore grades in or around 1% average LOM (with PLS at around 1.3%). In reality they will be both processing grades 1.1-1.2 later this year and PLS might be higher than 1.3 I'm not sure. A40 72-80%, PLS 75% and AJM have guided 80% recovery rates (highest of any peer).
Is AJMs plant better than PLS/A40 plant to be able to achieve higher recoveries?
PLS certainty aren't shy of being aggressive with the numbers they expect to achieve but go with 75%.
220kt x 1.1 = 242kt
1.54MT x 1,1 = 1.7MT
1.7MT is 30% below A40s 2.2MT guidance yet both have similar grades for LOM and similar recoveries.
Why are we only guiding 10% more production?
220kt x 1.5 = 330kt
1.54mt x 1.5 = 2.3MT
2.3mt is 15% above 2MT PLS guidance or approx 30kt (deduct 10kt from that 30kt if you expect 80% recoveries to be achieved) of annual production, taking annual production of 220ktpa, using lower ore grades. Very interesting.
2.2mt is 10% more than PLS but guidance is for 25% less production.
Yes the lower grades will have an impact but shouldn't be a 25% less production impact I would hope.
PLS running at around 60% recoveries last I read, AJM running as per last announcement at 67% recoveries in the first two weeks of March which is approaching my estimates from a previous post and A40 recoveries at 64% which is nameplate.
Tears will be shed and champagne will be popped, sadness and joy, frustration and elation.
A little recap for the new players, TAW released this almost exactly a year ago now.
Looks very similar to a recent announcement that I read somewhere.
Ore commissioning through the newly‐constructed Dense Media Separation (DMS) circuit has made significant progress in the first two weeks of operation. The DMS circuit has performed to expectations with nameplate capacity of 162tph achieved within the first 2 weeks of ore commissioning. The DMS circuit is scheduled to be ramped up to full production rate during the second quarter of 2018."
A40 Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
