Post by
TELEMARKER on Jun 15, 2023 2:09pm
MD&A
During Q1 2024, the Company mined a total of 8,504 tonnes of ore and 406,702 tonnes of waste, all of which came from the Siwash North Pit. The average ore grade delivered was 8.34 g/t gold, resulting in total gold ounces sold of 1,798 and a strip ratio of 47.8. During Q1 2023, the Company mined a total of 15,063 tonnes of ore and 379,855 tonnes of waste from the Siwash North Pit. The average ore grade delivered was 4.24 g/t gold, resulting in total gold ounces sold of 1,898 and a strip ratio of 25.2. The higher strip ratio in Q1 2024 was also the result of completing a number of push backs and dealing with oversized boulders during this process for pit development.
As of April 30, 2023, Gold Mountain had a working capital deficit of $1,305,426. For Q1 2024, the Company earned net income of $960,609, received cash from operating activities of $1,384,051, and used cash of $1,676,209 for investing and financing activities.
The ongoing operations and capital expenditures of the Elk Mine are dependent on the Company’s ability to generate sufficient cash flow from production, which is subject to operational performance, achieving targeted production levels and the price of gold or the Company’s ability to raise additional financing. During the year ended January 31, 2023, the Company experienced challenges during commissioning with respect to both grade control and sampling processes, which resulted in lower than forecast ore production during initial ramp-up. To continue operations at the Elk Mine, the Company will need to improve operational performance and may require additional equity, debt or an alternative form of financing. While the Company has been successful at raising funds in the past, there can be no assurance that it will be able to do so in the future. The condensed interim consolidated financial statements do not give effect to adjustments to the carrying values and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. Subsequent to April 30, 2023, the Company entered into a silver royalty which generated a $2,500,000 immediate cash infusion, which facilitated the final property payment of $3,000,000 to Sandbox, for further details see the Subsequent Event section in this MD&A