TSXV:GSVR - Post Discussion
Post by
ErinBrockovich on Jun 15, 2023 9:41am
Cash Costs Declining For GSVR
@bedrag Silver price in GSVR earnings - last quarter they sold at a realized price of 22.50 according to financials. I'm assuming that was made up of the avg monthly price for Jan (23.65), Feb (21.92) and March (21.98) - average those out and you come up with 22.51, so pretty close to the price they listed. So for Q2, we have so far 25.01 and 24.27 for April and May. For June, i'm using the daily silver price and it currently averages out to 23.85. If we take this number and assume June stays around the same levels, we get a quarterly realised price of 24.38. This is an 8.4% higher realised price. All things being equal this will flow through to the bottom line. GSVR looks cheaper every day (in fact it is cheaper every day lately, lol!) 2
@Sinkpisser Cata mill came online during beginning Q1. As we saw with El Cubo costs were high in beginning during ramp up and took a few quarters to get below $15 cash cost. It would of been nice if they reported the mill cash costs separately but I imagine Cata was $25+ while el cubo continued to run efficiently under $15. Cata began at 8k tpd and is planned to ramp up to 20k by year end. The efficiencies of scale will bring costs under $15 and ramp the total ounces to 1.5mil/quarter run rate 1
@lexcon @Sinkpisser well, they did break out the costs by the three mills separately. Its in the MD&A And surprisingly its the opposite of what you are theorizing---the El Cubo is running higher cost than Cata (VMC). Cata is the lowest cost center, and because it only came on line at end of 2022 it ramped up to 33% of the total company wide production. The projections they have posted if you do the math, the Cata mill will be 45% of annual production once up to full capacity. That means they will increase 50% more output from Cata (33% to 45% of total production) which will make their lowest cost center contributing close to half of the production---ie, cash cost and AISC will decline.
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