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clock Created with Sketch. 13/01/17
14:27
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Originally posted by ajostu
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Well it's not bad news but I'm not yet convinced. After the initial $70k WWI has received a further $100k which sounds good but my rough back-of-envelope calculation based on 2g/t and a gold price of $US1100 or better give me more like $US300k so we're a long way less than I'd expect.In the interim the operation is continuing pursuant to the term sheet on the mutual understanding between the Company and its contractors that adjustments will be required under the final agreement to accommodate the likely expansion of the tonnage recovered at lower grade.
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Things will only get better. Unit cost will come down as production increases. The fact that the project is cash positive so quickly is great news! They've got the project up and running and can now look to optimise and streamline the operation. Payment so far has been for months where ore processing has averaged less than 5,000t/m and has covered start up costs. Think we're through the worst and would expect to see significantly more cash flow each month.
(20min delay)
