Post by
auburn2 on Sep 20, 2024 1:17pm
What explains the unusually low cash costs?
For this low grade operation? Is it mostly a matter of China having dirt cheap mining costs? I can't find another mine with grade this low generating such strong profits. Heard Ross Beaty talk about making money with open pit mines, but when reviewing EQX financials, I see operations like Santa Luz in Brazil where grade in the last quarter was 1.34 g/t and AISC was $2,399/oz. To be sure recoveries were only 60.3% while PRG purports to have 95% recoveries. However, let's look at Aurizona Gold Mine, Maranho, Brazil, where recoveries were 89.4% and grade processed was 0.86 g/t, which is almost double what PRG is doing. AISC is $3,280/oz in the last quarter. Can't imagine China is a much lower cost jurisdiction than Brazil.
Comment by
auburn2 on Sep 20, 2024 1:24pm
RDM is located in Minas Gerais State, Brazil and commenced production in early 2014 as a conventional open-pit operation.. Last quarter results: 0.67 g/t avg grade processed. Recovery of 86.1%. AISC: $1,774/oz.