RE:Production Goals and Accomplishments
Stan, Many thanks again for your considered thoughts on the numbers we are all giving thought. I must admit to struggling to understand the point you are making towards the end of your post when you say, "these modest numbers are still a fraction of the production and sales figures that have been front and centre of the Feasability Studies that are a matter of record." In an effort to manage peoples expectations, it worth highlighting the Preliminary Feasibility Study starts at Year 1 where the final product volumes exceeds 600ktpy - a volume of product we currently do not have permission to produce. I raised this question a few months ago. Page 201 of 218, Table 22.2-1 Economic-financial analysis of the project includes a table (a link to a screen shot can be found below) which sets out the year on year costs and subsequent profits. Estimates of Years 1 and 2 conclude with +600kt of mined product with a total revanue of circa $23m. Year 3 sees us jump to 5m tonnes of mined product rocketing the revenue to $177m. Now (Aug 2020) we have receipt of the latest Operational License and the Company is now fully permitted to mine 432,800 tpy, THEREFORE (and this is my question) are we on the cusp of Year 1 (as defined by the PFS) , albeit with only permission for 70% of the targeted 600k? Moreover, in the August 2020 press release, it said "Though we will not reduce the drive towards obtaining the 2,500,000" would it be correct to assume year two could look far grander than defined by the PFS (600ktpy) should this 2.5mtpy Operational License come to fruition within the first three years defined by the PFS ? I for one am desperate to see this move however, the I would be happy with 220Ktpy target (keep in mind, this target was set before we even had permission to produce 432,800 tpy). Like Sugoioi said, I would be happy with the 220k target, its what they said they would do and it keeps us on an upward trajectory. In my view it would be wrong to penalise them or see them in bad light if they don't hit the arbitary target that you set of 300ktyp. Bearing on mind, we are not even in year 1 of the feasibility study. https://documentcloud.adobe.com/link/review?uri=urn:aaid:scds:US:653e075f-5c38-434f-9aed-b4520b81b27b