RE:Well i guess.... Hello Stud,
There is indeed an error in your calculation. The amount you used for 2020-Q3 is ounces of gold sold rather than produced. The amount of ounces of gold produced for the 2020-Q4 is 10,803. If memory serves, my estimate was 15,250 ounces. I admit that's a big gap.
In my opinion, this difference is attributable to the stripping work of the various pits. I suspect a significant amount of low grade surface ore has been processed. To avoid this situation, the content must be balanced by the addition of richer ores. Unfortunately, this requires an additional operation and increases the average cost of production, which is not in the spirit of the low-cost. Robex has one goal, which is to produce at the lowest possible cost. Therefore, one should expect larger fluctuations when comparing results quarter after quarter. In the long term, this way of operating will make it possible to obtain financial efficiency with regard to operations.
Another point, the increase in the value of gold for the year 2020 has resulted in the cut-off grade being reduced to 0.25 grams / tonne. In other words, Robex generates an operating profit as soon as this threshold is met. In 2019, Robex reportedly paid to transport this ore to the reject yard rather than processing it. Again, this way of operating contributes to fluctuations in results but in the long run efficiency over performance is achieved.
Speaking of drilling results, we have new mineral resources equivalent to 65,000 ounces of gold. Considering the current value of gold at CAD $ 2,125, this represents additional future income of over $ 138,000,000. IT CAN BE CONSIDERED THAT ROBEX HAS DONE WHAT WAS NECESSARY IN 2020 TO ENSURE THE SUSTAINABILITY OF THE NAMPALA MINE.
The overall increase in mineral resources; the acquisition of the Gladie permit; the lifespan of more than 10 years, the stripping of 4 pits as well as the increase in the capacity of the elution system make it possible to seriously consider an increase in production capacity. THIS IS REALLY VERY ENCOURAGING BECAUSE ALL THE SETTINGS ARE GOING IN THAT DIRECTION. My opinion on this point is that news to this effect is imminent.
With regard to 2021-T2, the commissioning of the cone crusher will enable the ore from the transition zone to be processed. Remember that this ore is 31% richer than in the oxidized zone and we have almost the equivalent of 4 years of production in this category. Previously, the plant was not designed to efficiently process this type of ore. Therefore, it is available and accessible at the bottom of the main pit, where the oxidized type ore has been processed. The fluctuation in operating results should possibly subside as early as 2021-Q2, taking advantage of the presence of the cone crusher and this richer ore. As mentioned in the press release, a reserve of from the transition zone has already been moved to the rompad. For your information, the rompad is this area located very close to the feeding area. This deposit could possibly be processed during the rainy season, in 2021-Q3, which will allow to obtain excellent results for this period when everything is more complicated.
Finally, Mr. Benjamin Cohen reiterated his goal of growing in West Africa. Personally, I consider the current context particularly favorable for the acquisition of a permit ready for exploitation, without wanting to name it. I sincerely hope that this wish will be fulfilled in the coming months.
GLTA