TSXV:AUN.H - Post by User
Post by
andre171on Oct 30, 2021 9:04am
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Post# 34067469
Happy end of construction
Happy end of constructionFor me, what is very important is that Aurcana starts operations and production and has therefore completely completed its construction phase. Indeed, reading the results of 3Q, we begin to see that inflation and the increase in materials and labor are already significantly affecting the cost of construction or modernization of mines. For example, for its Rochester mine, CDE is forecasting an overall price increase of up to 15% after the operation is 42% complete and most contracts were already committed. This is one of the reasons why I appreciate Aurcana, which is starting to exploit compared to others who have not yet started their physical development and who will have to do so at much higher prices, sometimes compromising the overall profitability of the projects. On the other hand, we can hope that the increase in costs will cause the price of gold and silver to rise and Aurcana would then be a double winner!