GREY:NWMMF - Post by User
Comment by
blackbaton Apr 16, 2012 3:38am
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Post# 19797587
RE: Cash cost analysis (some future enablers)
RE: Cash cost analysis (some future enablers) Yes, very good poste, production05!
I think the most important point is the strip ratio in such operations. When removing waste rock, you have exactly the same costs but zero revenue.
One thing I want to point out is also the delay which comes from the leaching process. In the last monthes, they mined much more ore (and put it into the leach pads) than the production output suggests - simply due to the time delay. So it's clear that during the ramp up of mining tonnage, the costs per produced ounce of gold is higher than in the "steady-state" phase (the produced gold ounces comes from the ore mined a few monthes ago!)
So I expect that the cash costs will come below 1000$ within the next two quarters.