RE: Lassonde Curve9 Nov 2023 17:54
Don't forget in regards to development costs and projections of AISC in DFS :
- that there was a threshold of +/- 25% already factored into the PFS
- whilst you'd expect inflationary pressures to play a part in influencing AISC upwards in DFS, we also have as of yet unknown optimisations to factor into the DFS too that will have helped to combat these
- a 50% increase in production profile from 2mtpa to 3mtpa which does not correlate directly to development cost increase due to economies of scale
- increase in revenue from any increase in production also allows for more lending if required i.e scalable funding as Shaun has alluded to
- ultimately Shaun expects us to retain our relative position as a producer in the lowest cost for gold mining globally
As for the Lassonde Curve, we seem out of sync as much of our development is happening pre DFS/DTM during the 'Orphan Period'. I think the collective of those of us who held expected the existing infrastructure and development work to make us immune to the orphan Period, well it didn't and nor did GGP prove immune to money leaving the sector.
However, the fact that we have funding in principle ready once DFS/DTM made and we'll have already hit the ore body with a production ready decline (vs exploration decline) we should have a shorter phase 2nd wave with the development of stopes etc. towards first ore I presume into 2025 vs 3-5 years away.
Then there should be a another increase in value in time as the bulk or selective mining that will be planned for in addition to the SLOS mining with a PFS, DFS and DTM to increase the ore extracted from Havieron into Tier 1 territory.
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