Majestic Gold Corp. V.MJS

What explains the unusually low cash costs?

[auburn2]

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.

[auburn2]

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.

[auburn2]

Los Filos is located in Guerrero State, Mexico, and commenced production in 2008. Mining operations in 2024 involve three open pits (Los Filos, Bermejal and Guadalupe) and one underground mine (Los Filos). Crushed and ROM ore from the various deposits is processed by heap leaching. Last quarter results: Average open pit gold grade 0.67 g/t. AISC $2,274/oz. The feasibility study says: "The