RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Not a Done Deal Life, Florida Canyon was not profitable in 2023. Show me your numbers. Here are the company’s numbers stated in their year-end MD&A for 2023:
Capital expenditures at the Florida Canyon mine for the three and twelve months ended December 31, 2023, were
US$3.5 million and US$17.3 million, respectively, largely related to leases of mining equipment.
AISC includes some CapEx, I will provide you with a calculation for the cash cost, which represent the cost per tonne mined. Afterward, I will include CapEx separately.
18,220 (GEOs sold) × US$1,410 (Cash cost per ounce sold) = US$25,690,200 (Cash cost)
US$25,690,200 (Cash cost) + US$17,300,000 (CapEx) = US$42,990,200 (AISC, including CapEx)
US$42,990,200 (AISC, including CapEx) ÷ 18,220 (GEOs sold) = US$2,359.50 (AISC per ounce sold, including CapEx)
US$1,907 (Average realized spot price per ounce) - US$2,359.50 (AISC per ounce sold, including CapEx) = US$452.5 (Loss per ounce sold)
18,220 (GEOs sold) × US$452.5 (Loss per ounce sold) = (Net loss) US$8,244,550
As evident from the screenshot of the company’s year-end MD&A for 2023, the average realized spot price per ounce was US$1,907, while the real All-In Sustaining Costs (AISC) per ounce, which includes total capital expenditures (CapEx), amounted to US$2,359.50. This implies that the operation incurred a loss of US$452.5 per ounce mined, or a total loss of US$8,244,550 in 2023.
Another point to consider is that the strip ratio appears unusually low. In the technical report, the Life of Mine (LOM) strip ratio is stated to be approximately 1.25, not 0.62. If the strip ratio were indeed 1.25 in 2023, it would have resulted in operating costs per tonne for waste materials being twice as high, consequently negatively impacting the All-In Sustaining Costs (AISC).
