Thanks Legume, I underestimated the amount of waste that took...

Thanks Legume, I underestimated the amount of waste that took hauling capacity away from ore, but otherwise I am pleased with their progress.

Haulage capacity c. 180kt per qtr.
Actual ore hauled was 146kt
Therefore c. 34kt of haulage capacity was used for waste (service shaft, new ventilation shafts, ore passes, et al). This level of waste should progressively reduce as they complete these various improvements to the mine and that should provide increasing capacity for payable ore.

Head grade surprised to the upside! The improved contractual terms for new stopes does appear to be working well.

I am a bit confused regarding the all-in-costs. I have been able to calculate them within a couple of USD/oz over the last few quarters but found I ended up US$27/oz out this time. ie
my calculation was US$1,049/oz but MML reported US$1,076/oz (which was obviously correct). That infers there was an additional US$716k of costs that I have lost somewhere!

Good that they are providing more information each quarter. The stope grade and stope inventory graph was useful. Indicates that there was c. 60kt of ore at 7.2 g/t held as broken ore within stopes at 30th June. So approx 13.9koz of contained gold awaiting haulage.

The plant utilisation graph was also informative. Clearly the mine has not been able to keep the plant sufficiently supplied - but we knew that already and Bob Gregory has been putting a number of steps in place to get that utilisation up towards 100% instead of the c. 75% average over FY15.

From the quarterly figures it looks as though they have paid down most of their remaining debt out of free cash flow, but as they have not supplied the net cash figure I guess we will have to wait for the full year financial results to see the full situation.

Market reaction to the report seems overly negative as their PER is now below 2x and they are clearly improving Co-O markedly. I guess this is the price they pay for being a 'market darling' and then falling from grace. It is clearly going to take a lot more time for sentiment to improve!
CPDLC