New PresentationI am impressed with the expansion nuances in the latest Powerpoint presentation.
Haile -- Achieving planned rates of 60,000 tonnes per day and higher, more tonnage, slightly better grades, commenced stripping Snake pit, increased regional land package by 50% from start of 2016, deeper expanded area of underground drilling (e.g. new area between Snake and Horseshoe called Snakeshoe).
Wahi. 3 drill rigs focused on resource extension & conversion below Martha Pit, Martha Project Study expected in Q3/17, targeting incremental ONE MILLION reserve ounces in the medium term (30% targeted from surface which I think means getting the Martha pit going again), +6,000m drill program starting in Q1/17 in nearby Hauraki, mapping and sampling on numerous prospects on the Coromandel peninsula.
MacRaes -- Coronation North M&I Resource grade ~40% higher than current Macraes head grade, drilling five targets in 2017, advancing Macraes Tungsten project, future new location + build of smaller process plant w/Tungsten circuit, MINE LIFE EXTENSION: Potential for mine life of 10-12 years.
Didipio- Received suspension order on Feb 14, 2017 citing “... petition of the Local Government of Nueva Vizcaya for the cancellation of the FTAA; alleged damages to houses caused by the blasting operation; and the potential adverse impact to the agricultural areas of the Province...” BUT “No environmental, regulatory or legal violations cited by DENR audit team”, Continued engagement with all parties involved, Mining rate to ramp up to 1.6 Mtpa by 2020 .
Not mentioned in the slides:
- They will be mining the bottom of the Didipio pit, which means less waste and higher grades (i. e. higher Didpio revenue over the next few quarters).
- Putting Philippine exploration on hold (or in low gear) until the suspension issue is resolved (lower costs at Didipio).
- The situation (and possibilities) in El Salvador (where they lost the legal battle).
Year Ahead - March (resource & reserves update), April (Q1 2017 results), Q2/17Haile Commercial Production expected, June 23/17 (Toronto – AGM and Investor Day), expand Haile 2 Mtpa to 3 Mtpa by end of 2017, NZ site visits July 6 & 7.
The AGM in Toronto makes sense given that the predominance of shareholders is in Canada. The July 6&7 (winter) site visit in NZ makes no sense. OGC should reschedule the site visits to January and we should all go.
In a more serious conclusion, OGC has a good record delivering on their plans and forecasts.