RE: Q1 Results Stratospheric ❗❗❗12 Jul 2023 10:12
$700 is too low. I would suggest for operating costs use the statement from CB in the annual report on page 25
"Production has stepped up further since the balance sheet date with the plant processing approximately 40,000 tonnes
of ore per month. The new plant has proven reliable and is producing recoveries of around 88% from the oxide and
weathered transitional ore. The plant has C1 operating costs of approximately $800 per ounce"
Land tax is not related to with where the gold is sold. Selling gold in Dubai ensures a higher sale price per oz than when they were selling in Moz due to VAT. Last production report quoting average realised sale price per oz would indicate that gold is being sold in Dubai.
The cost of team on ground from Explorator is likely, my opinion, an additional cost to the $800 / oz. The last production report doesn't make this clear. I suggest this shold be explicitly asked at the AGM. I won't be at AGM but questions I would like to have asked around Mozambique and FB following the last quarterly production report are:
1. Now FB are achieving commercial production and even nameplate capacity has been reached. Are XTR receiving the $20k per month as per RNS when MMP were appointed ? Is this a separate income line which could be reported or is it netted off the production costs ? If separate income then disclosing this would be helpful in the next quarterly report.
2. The production cost quoted of $1185 / oz in last production report - is this inclusive of production tax or is this a separate cost which XTR as licence holder need to settle ? If it is a further cost above the $1185 then a footnote to explain this would be helpful in the next quarterly report.
3. In the annual report you indicated more recent C1 cost of $800 / oz now plant is processing 40k tonnes per month is this equivaleint to operating cost on which the profit share agreement is based ? Going forward is $800 / oz a reasonable assumption for shareholders to assume when considering investment potential of XTR ?
4. Do you still have an on the ground team in Moz ? If so are the costs of this team included in the $1185/oz or is this a separate cost as it is shared with alluvials and hard rock. If separate it would be helpful to continue to disclose the quarterly cost of this team as done pre Fairbride. Can they give an indiation of the cost per quarter of the team ?
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