RE:AISC ;1rockit wrote: Can anybody tell me how they intend on getting their costs down below .60 . I understand the process but in a nut shell what can they change that will have such an effect on costs . Thanks very much .
The table below reports the 2021 Q1 and 2020 C1 / AISC costs per the MDA (page 21).
The second half of the table reports costs by category by pound (and since AISC is at $0.99, each cost category can also be viewed as a percentage).
The four key areas to consider for cost improvements include:
> Smelting and refining is the largest cost category (and Q1 includes the 2020 $300 per tonne rate so this cost should continue to decrease in Q2 and beyond).
> The by-product revenues may be more significant when Caribou ramps up production and Rosh Pinah books the sales (expecting one sale for each of the next three quarters).
> G&A is a concern and an opportunity. The MDA table (page 21) reports Caribou at $0.2M, Santander at $1.0M, Rosh Pinah at $1.8M and Perkoa at $4.6M (and only for a quarter). The Perkoa G&A is more than double Rosh Pinah - management needs to invesitgate.
> Sustaning CAPEX - by definition, this spending is required to maintain current operations but management could still defer / delay or re-work this spending.
| | | | 2021 Q1 | 2020 |
| Mining | | | 16,584 | 68,370 |
| Processing | | 11,421 | 41,776 |
| Maintenance | | 4,921 | 17,577 |
| General and administrative | 7,726 | 25,684 |
| Smelting and refining | | 22,420 | 129,360 |
| Distribution | | 4,641 | 18,482 |
| Royalties | | | 2,250 | 5,835 |
| By-Product revenues | | (3,576) | (26,027) |
| C1 | | | 66,387 | 281,057 |
| Sustaninging CAPEX | | 6,650 | 32,887 |
| Lease payments | | 1,238 | 4,257 |
| AISC | | | 74,275 | 318,201 |
| | | | | |
| | | | 74.8 | 313.0 |
| Mining | | | 0.22 | 0.22 |
| Processing | | 0.15 | 0.13 |
| Maintenance | | 0.07 | 0.06 |
| General and administrative | 0.10 | 0.08 |
| Smelting and refining | | 0.30 | 0.41 |
| Distribution | | 0.06 | 0.06 |
| Royalties | | | 0.03 | 0.02 |
| By-Product revenues | | (0.05) | (0.08) |
| C1 | | | 0.89 | 0.90 |
| Sustaninging CAPEX | | 0.09 | 0.11 |
| Lease payments | | 0.02 | 0.01 |
| AISC | | | 0.99 | 1.02 |