TSXV:OSU.H - Post by User
Comment by
amarkspon Aug 22, 2008 3:54pm
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Post# 15404816
RE: 65% of design capacity...
RE: 65% of design capacity...I could be wrong, but I doubt that OSU is going to need to raise more cash. Your comment:
"Expect more cash to be raised. Few mines can make money at such low rates as unit costs eat them alive."
The "unit costs" are impacted more by non-cash expenses (i.e. depreciation and amortization).
I do agree that operating at 65% of capacity is not exactly clear. One would hope that this means as Omni posted:
"65% of the expected average annual production of 140,000 oz. of gold and 25 million pounds of copper, then on a monthly basis Varvarinskoye should now be producing in the ballpark of: 7500 oz. of gold (which is 2000 oz. more than is needed to fulfill hedge requirements), and 1.35 million pounds of copper"
But the key issue is the grade of the ore being processed, IMO. If the ore grade being processed now is consistent with the Tech Report, then Omni's estimates are likely materially correct and OSU will not have to raise any more cash.