Ann: Trading Halt, page-58

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20/02/18

16:21

Post #: 31195297
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Originally posted by plough ↑

I will leave BDR out of the equation , that is an unbelievable failure can not keep blaming the weather for having trucks stuck in mud or not using correct rim pull calculations .
NST did a cap raising at Paulsens early on hopefully this raise emulates that eventual result .

With Deflector the resource grade over time since Mutiny had it , kept dropping (tonnage increased ) it is about 75% of what it was originally from memory hence the AISC per oz went up .
THat is partly a reflection on change in cut off grade and partly a reflection on what was over optimistic assumptions early on , guessing they did not account enough for dilution

However :

The AISC for December at Deflector was $900 an oz (with Cu credits ) on around 5800 ounces so $5.22M in AISC
In Jan they did 6500 ozs assuming AISC the same at $5.22 M (5.22M/6500) = A$803 an oz say $820 with extra royalties from extra Ozs
Lets say instead of an $800 margin we use a A$500 margin per oz as AISC never shows all corporate costs , so $500 * 6500 oz = $3.25 M free cash flow for Jan is what I forecast .
Will that replicate going forward ? Personally I feel it will go lower as they mine out Da Vinci based on my calculations however I never did take out a nugget effect/top cut though as I did not think it such a big issue given the average width at Da Vinci looked to be around 4 Meters with the gold in homogenous chalcopyrite and I assumed therefore a simple log normal distribution , But I have no geo qualifications so probably wrong .

So yes mine should not need cap raise to pay debt , but does allow for more aggressive exploration if some of the cap money is used for Da Vinci ,to hopefully bring forward Da Vinci into the mine plan .

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The Copper credits are part of the AISC already so the disclosed AiSC is including copper revenue

DRM Price at posting: 32.0¢ Sentiment: Buy Disclosure: Held
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Ann: Trading Halt, page-58

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