RE:RE:RE:RE:technical report SRK for fundamentals"During both years, ore through-put will be blended with lower grade material recovered during the expansion work." Exactly, so why are you boasting of revenue doubling in 2025 when you know full well most of the grade is projected to be around 0.5 g/t Au still in 2025? Latest MD&A says:
"Gold production was 7,942 ounces for the first quarter of FY2024, from 493,548 tonnes of ore processed with an average grade of 0.53 g/t and a 95% recovery rate, compared to 8,127 ounces produced, from 494,588 tonnes processed with an average grade of 0.54 g/t and a 95% recovery rate, for the FY2023 comparative quarter."
I don't know how they can be so profitable at ~0.5 g/t. The total NPV for the project at more than double that grade (1.17 g/t) is only US$400 million.
The cash cost figures are similar to Alamos' open pit La Yaqui Grande mine, where the average grade processed has been 1.31 g/t Au. That's in Mexico where labor and costs are low.