Whats Wrong, page-46

Feasibility says 5,000t per day or about 1.825Mt.

Where are the people screaming blue murder for spending A$859 million!!! to build 1.7Mt of sulphide processing capacity.

There appear to be a stream of people willing to denigrate RSG for having spent around A$350 or less on building 2.4Mt of capacity at Syama.

Like I said the in-situ sulphide grade at Copler is much lower than the stockpiled grade at 2.56g/t and the sulphide reserves were only 2.5Mozs when the DFS was published. I think RSG is providing much more capital efficiency when you compare each sulphide project.

Also people here keep claiming that Copler is complete. From the recent reports I've read the utilisation is still at 80% and they haven't declared commercial production yet. Also recoveries are at 90% vs 94% in the DFS. One needs to wonder how recoveries will react once the high grade stockpiles (~4.8g/t) which have been sitting oxidising out in the open for years are consummed and the plant starts to process run of the mill sulphide ore with a grade of 2.56g/t.

Just reading the feasibilty some more and I noticed that the construction plan shifted from 6 or 7 vertical autoclaves to two larger horizontal autoclaves which provide better efficiencies. Originally it wasn't believed that the roads to site in Turkey would not be capable of transporting such large pressure vessels. As mentioned before there is considerable risk to the project IMO if either of the two installed autoclaves goes down as capacity through the circuit is instantly halved, this risk is also exacerbated during the debt pay-down period because halving capacity during this period for any extended length of time would flow through to all the expected future cash flows and hence the project value which is already being valued close to maximum assumed in the DFS based on US$1,300 gold (refer to my previous posts where I calculate the EV and point to the Copler sulphide LOM higher end projections of NPV, giving page numbers for your reference from the DFS) and the company's EV.

Also as mentioned before, the plant relies on making its own technical grade oxygen to allow the pressure oxidisation process to work. Any problem with the oxygen plant and the sulphide circuit is down running on stored oxygen capacity in liquid form. Esh