An interesting report. If I'm reading it correctly - looks like they've already paid their $5,000,000 deposit for Mt Magnet (point 1.8 in the cashflow part of the report). Also looks like they've borrowed $7,000,000 (point 1.16) from somewhere.
Although, as expected this report shows they were burning through the money, I think it proves MK can deliver- From Davyhurst with 192,742 tonnes of ore milled during the quarter. The only problem was the grade of 1.29 g/t. They've started on higher grade pits (Missouri and Mt Ida(very high grade)), so the actual ounces produced will be much higher for the same ore through-put. Especially once Riverina comes online in March (4.35 g/t), will see very good grades being processed.
Some of the Mt Magnet dill holes are showing good grades at near surface- This is consistent with MKs plans to change Mt Magnet to open pit mining.
Fingers crossed that based on the graph produced on 18/12/07, Monarchs production is well and truly in positive cash flow.
Will be interesting to see how the market feels about the report. I'm thinking it is close to what was expected. Looking forward to the next quarterly!!!
MON Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
