Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Lachlan Star Ltd T.LSA


Primary Symbol: LSLCF

Lachlan Star Limited is an Australia-based copper and gold exploration company. The Company is focused on the discovery of gold and copper resources across a portfolio of early-stage high-potential exploration projects located in central New South Wales. Its projects include North Cobar, Junee, Bauloora North, Koojan, Killaloe, And Princhester. It holds a 100% interest in the North cobar project, with a focus on gold-copper and lead-zinc-rich deposits. The North Junee Project is located within the Gold-Copper Heartland of Australia, a region that contains over 110 Moz gold and 19 metric tons (Mt) of copper. The South Junee project, situated approximately 60 kilometers southeast of the Junee project, lies within the Lachlan Fold Belt. The bauloora north project is situated east of the township of Temora in central New South Wales. The Killaloe Project, located in southeast Western Australia over 600km east of Perth and 20-30km northeast of the historic gold mining town of Norseman.


OTCPK:LSLCF - Post by User

Comment by TheRock07on Jul 26, 2013 9:17am
216 Views
Post# 21632027

RE:Gold recovery jumped 45 % in Q2

RE:Gold recovery jumped 45 % in Q2Stunned, stunned and more stunned.
 
I normally do these simple calculations, but got caught up in the statistical minutea.
 
It does account for a substantial proportion of the production gains in Q2.
 
Both of these factors ( recovery rate, grade ) are costless, as the unit  mining costs are unchanged.
The big difference is in the cash costs which will drop like a rock.
 
Let me illustrate using Q1 numbers.
 
In Q1, mining costs were $13.5 million and other costs were $4.3 million for total operating costs of $17.8 million.
 
Cash costs in Q1 was about $1240 per oz ( $13.5 divided by 10800 oz.
 

 We know that there was a reduction of  0.95 million tons of ore in Q2 from recent output stats.
This will save at least $2.1 million ( cost was $2.20 per ton in Q1).
 
That is, mining costs were $11.4 million in Q2 but this still produced 16,200 oz of gold.
 
Cash costs ( in the conventional sense ) was therefore  $705 ( $11.4 divided by 16200 ) or over $500 per oz  lower than  Q1.
 
That is simply huge
All other expenses in Q1 amounted to $4.3 million and these should not change ( if anything, it should go down due to cost compression measures ).
 
This amounts to $265 per oz  for a total all in cash cost in Q2 of $970 per oz.....a huge drop from Q1..

This should provide for operating earnings in Q2 of $5 million or more..

Tks for pointing this out
<< Previous
Bullboard Posts
Next >>