RE:RE:price of copper...Their financials were released on May 7th, here's everything you need to know and maybe some things you didn't want to know.....
OUTLOOK
Construction of the Gunnison Project was completed as of the end of the year 2019, copper production in solution from the wellfield started, and the Company advanced to the start-up and commissioning phase. Total project-related capital expenditures for the Gunnison Project were previously forecast at approximately $88,000. Total capitalized expenditures including accruals on the Gunnison Project as of March 31, 2021 were $92,464. The forecast exceedance is the result of capitalizing operating costs to the project during the longer than expected production ramp up phase.
The Company has previously disclosed the various issues that have been identified during the ramp-up phase of initial production. Certain issues have been resolved (as detailed above in this MD&A) but a variety of issues still need to be worked through, such as how to minimize the impact of carbon-dioxide on fluid flows and how best to maximize flow rates in general. The reduced flow rates are slowing ramp-up to name plate productions of 25 million pounds per annum. The Company believes this is a finite problem; however, in an effort to speed up the removal of the effects of carbon-dioxide or reduce its impact, the Company is undertaking a number of wellfield optimization programs. These are occurring in conjunction with daily operations, with the expectation that name plate production will now be reached in the first half of 2022.
To the end of the first quarter of 2021, total Copper production has reached 185,000 lbs. This low total production number is due to certain factors including reduced flow rates and the wellfield being operating at a reduced capacity in March 2021 as certain wellfield optimization initiatives were being tested. Additional wellfield optimization initiatives are being planned or considered. Many of these may initially be disruptive to production ramp-up due to the installation and/or testing of equipment or the application of the initiative.
While Management is focused on mitigating the impact of these initiatives on ramp-up, they may contribute to further extension of the production ramp-up period. In conjunction with the above, Excelsior is also maintaining a cautious approach to expanding wellfield operations to allow for an operation that minimizes the risks of COVID-19 transmission. To reiterate, Excelsior’s focus continues to be on attaining a sustained production rate of 25 million pounds of copper per year, after which Excelsior will focus on expanding that production rate. Achieving this outcome is contingent on managing COVID-19 conditions, resolving ramp-up issues and successfully implementing many of our wellfield optimization programs.