Back to the last management report The expectation of improved profitability in the second half of 2021 is not surprising. Over the past year, several investments have been made with the aim of improving either the efficiency of the plant or the processing capacity. For my part, I believe that all these improvements have reduced the impacts of the containment of operations in 2020-Q2, the exceptional rainy season in 2020-Q3 and the subsequent quarters dedicated to the stripping of 4 new pits.
The consultation of the operating statistics contained in section 6 of the last management report shows that despite all the improvements made to the plant, the positive results are still not noticeable. In summary, investments have been made and to conclude, we have had a decline in gold production for 3 quarters. Without a good understanding of the project, these results may seem disappointing.
For my part, I believe that all these investments will have made it possible to counterbalance the negative effects of the events encountered since 2020-Q2. As we must focus on the future, I believe that the expected benefits of these efforts make it possible to view the future with great optimism. Moreover, the reiteration of the production objectives for the year 2021 is an element that militates in this direction.
It is important to understand that despite the low gold production of the last 3 quarters, today we have a plant that can process more ores, we have an improved ore selectivity technique and finally, we have a process more efficient and less expensive gold recovery. All of these improvements deserve our attention.
In addition, new cyclone pumps will be installed in August and work to optimize the mining plan will be carried out. The new cyclone pumps aim to improve the ore processing process while the optimization plan aims to improve the management of ore extraction. This optimization work is done in consideration of the 4 new pits, the knowledge acquired in 2020-2021 about the geology of the Nampala permit and probably in consideration of the next areas likely to be exploited.
Regarding the latest production results, I sincerely believe that taking the context into account, these results are more than satisfactory and help to envision a better future. I remind you that an average of 10,717 ounces has been produced over the last 3 quarters. Considering that these results were obtained from a surface ore of very low gold grade for which thousands of illegal miners worked there, built tunnels and left debris, these results are very satisfactory. This surface ore is decidedly the most difficult to process, the most unpredictable, the most expensive and therefore the least profitable.
Personally, I believe that the current context means that we are at the start of a particularly prosperous phase for Robex. In all of history, this environment has never been more favorable and predictable as it can be today.
Since the factory opened, Robex has never had 4 pits stripped simultaneously. This work will give a lot of opportunity in how to extract the ore and will ensure a continuous supply of the plant, despite the problems that may be encountered;
Robex has never had such small debt and therefore such low debt costs;
The state of mineral reserves has never been greater and as a result, Robex has never had such a low depreciation rate for property, plant and equipment;
Considering the current state of reserve, the budget allocated to drilling for this year is particularly low as the objective is to find new mineralized zones. In comparison to the determination of new mineral reserves, the determination of mineralized zones requires a budget reduced by approximately 80%;
The stripping of the 4 new pits having been completed, the stripping costs will be divided by 2 to return to a ratio of 3 to 1;
The surface ore being processed, the exploitation of the lower levels will make it possible to observe a progression of the gold grade and to reinstate the principle of the selectivity of the ore in the pits. Less gold particles diffuse in the soil makes it easier to identify what needs to be transported to the waste disposal facility and what needs to be treated. As a result, all statistics related to plant efficiency will improve, including cost per ounce of gold produced;
The installation of the cone crusher in 2021-T2 will stabilize gold production by processing the richer quartz blocks located in the transition zone of the main pit;
Another element external to Nampala, the increase in the value of gold on the international markets will have positive consequences on the financial results while a movement of capital towards safe havens, including gold companies, will be beneficial for the whole. of the sector.
In conclusion, I will be very attentive to the evolution of everything I have just said because the results for the next quarters and years will probably be better than anything we have seen in the past.
GLTA