It's always instructive to review the assumptions from which the factual information of your investment is based .
Take for example the mine life of 6 years assumed for the FP.
This was based on 267,000 ounces of sukphides being available as resources.
However, that estimate was based on a 0.75 gm per ton cutoff at a POG of $1300 per ounce.
At $1900 POG , a much lower cutoff would be profitable and the grade cutoff could easily be reduced to 0.5 gms per ton , as there would be an extra $600 per ounce in additional cash flows.
Even better, with a Breakeven of $1100 per ounce, that entire $600 per ounce increase in POG would be free cash flow going straight to the cash balance.
Some idea as to extra ounces available to be mined can be ascertained by the total sulphide resources
avaikable at 0.5 gram per ton .
That number is 736,000 ounces or an increase of about 460,000 ounces relative to the currently assumed 267,000 ounces .
However, those extra ounces assumed $2400 POG versus $1900 currently .
Assuming a linear relationship between estimated gold resources versus POG , about 55% ( $600 / $1100 ) of those 460,000 extra ounces at $2400 POG would be economic at $1900 POG.
Roughly about 245,000 ounces which combined with 267,000 ounces gives us about 500,000 ounces of economic grade gold at current prices for the FP.
This would extend the FP mine life to about 10 years from 6 years in the 2019 FS.
This difference ...clearly known to management,,makes quite understandable why they are considering early install of the Biox plant as it will pay for itself very quickly , given that we are receiving about $200 less per ounce by selling the raw concentrate..
Have a great weekend ..