Major Costs Mostly behind us
From an astute shareholder, comments on our emerging cost structure that need to be known..
" Also this quarter the money saving initiatives should start to pay off .
I am thinking of for example the making and storing of explosives right at the mine .
Up till now we were at the mercy of a supplier who was raping us and not long ago we had no explosives for several weeks .
Now we have them for immediate use and got rid of the middle man .
The storage and handling and shipping of concentrates is another big one .
I think we are now pretty much self reliant and nobody can hold us hostage . I am also thinking of the ore stockpiles at the mine and at the pits . Although they aren`t saving money right now , they are like a very good insurance policy and when you consider we had to move the oxide overburden anyway , if and when the oxide plant restarts we will have free ore on site for a long time . The cost is already accounted for .
Besides that , all the start up costs and upgrades should be mostly behind us , along with what they subtracted from the revenue pot .
Maybe not the next quarter but the one after that we could have one of the lowest AISC in the business ."
With Thanks ....Nozz