RE:What am I missing here?Scavenger columns and the new resin project wont be wrapped up until the end of Feb at the earliest. Recoverings will surely be better moving forward after completion though.
Wineaux wrote: After a very rough 2019 they now have the gravity concentrators, surge bins and scavenger columns all in place and commissioned. Therefore, for 1Q20 we should have the best recovery rates ever at 85%+ and maximum processing through-put of 1,800tpd+. Of course it's not 90% and 2,000tpd but that is the best they can do with what they have got. They have been holding off processing the BTD Extension high-grade ore until they have the plant at the best level possible. From what I can see is that they are very active there and the grades are amazing.
Historically they have processed grades up to 13.7gt in a quarter and last quarter they were a mere 7.1gt.
They've got a weak hand right now. One obvious way to strengthen their hand is by having a great quarter and generating cash. I mean if I were Neal I would be pushing EVERYTHING high-grade through in the quarter even it it's not 90% recovery.
Provided that they don't have more bad luck (power failures or mine issues) isn't it reasonable to assume that they will have a blow out quarter in 1Q20? Using my model with 1,800tpd x 86% recovery x 12gt x US$1,500 gold I have them generating about C$40M+ in free cashflow in the first quarter, they could do the same or better in the second quarter as well.