RE:RE:RE:RE:RE:PP all filled"They started mining the low grade area"
Well, the CEO said something different here:
https://soundcloud.com/novo-resources/first-australian-conglomerate-gold-production
Willie1Oz wrote:
BetontheFed1 wrote: Based on QH's comments in the Kereport interview, Novo is still spending more cash to mine Beaton's Creek than it's getting from selling the gold. Might be because they started mining in a low grade area. Whatever. Expect a cash cost per ounce of $1,900 U.S. and an AISC of $2,2200 U.S. for the quarter ended March 31. The second quarter will probably be around $1,750 cash cost with AISC of $2,000. My guess they won't start making a profit until the third quarter. This will be a horror show for the next 5 months.
Couple points. First, I think the first qtr ends Apr 30 and not March 31. I see the last finacials were dated Jan 31 but they also produced a consolidated Dec 31. So not on a calender yr. Secondly I would expect cash costs double or triple your estimate. Which under even normal startup would be expected because first they only started milling mid Feb and there was no doubt much adjusting. And yet on the expense side they have a full qtr of expenses as they were mining and stockpiling. So think more like 5000$ to $10000 an oz aisc. Just so you dont have a heart attack eh.
Dr Willie.