Post by
snowshoedb on Aug 15, 2019 12:11pm
Q3 - Seeds of Disappointment planted for Q3 Production
Once again managment has confirmed that the recovery circuit will require more installed equipment (pumping systems overhaul) in early Q3 and commisioned in late Q3... Tech speak for... "Don't expect an improvement in recovery rates in Q3. Expect 80% recovery to be the norm for Q3.
Gravity circuit Scavenger Columns in the gravity are expected for installation at the end of Q3 and commissioning in Q4... Tech speak for "Don't expect an improvement in recovery rates in Q4." Expect 82% recovery to be the norm for Q3.
Hence they reduced guidence for produced ounces which intern increases both cash costs and AISC. Sorry folks... management just wrote off the next 2 quarts and hence the year with ongoing problems with recoveries. To be blunt one can summarize as follows:
TMR Head AU oz production = 170,000 Au oz / 80% recovery = 212,500 Au oz
Plant Designed Recovery Au oz = 212,500 AU oz x 90% recovery = 191,250 Au oz
Ounces that should not be lost in tailings but were = 191,250 - 170,000 = 21,500 Au oz
2019 Money pissed away = 21,500 Au oz x US ($1306 +1500)/2 x 1.3 F/Ex = CA $39,214,000.
Lets hope next year they have things figured out... $39 million wasted is not lunch money.
Comment by
snowshoedb on Aug 15, 2019 1:18pm
Management raises 57 Million through Maerix agreement... Why? ... Because we spilled CA $39 million on the floor this year.