Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Given that during the last quarter there were 61 business days of one shift operation and 13 days of 24 hour (6 days per week) the output at stated operating capacity is 246.5 tonnes. The actual achieved of only 21.4 represents a capacity factor of less than 10% (8.7%). Hardly state of the art from this simple gravity separation process.
So apart from the grocer being appointed what exactly is the production since first ore in mid October and the increase from the move to 24 hour operation? When, if ever, will this reach a cash flow positive position? Captain Masterman:"Don't tell them Pike"
Surely you would run tests and crush a quantity of ore from Regua, transport it to La Parilla and run it through the old concentrator to check feasibility and efficiency before committing to moving it.
Nit Picking - Share price 27/12/18: 0.545p close today 0.03p a fall of 44.9% during the year.
Perhaps Extramadura have delayed the grant deliberately (but they would never admit this) just in case the business goes into liquidation.
The production delay means that there is no cash to support the company. Subsequent efforts to deal with this have not met the expectation set and as yet are still insufficient. You will recall that during the first half of the year Masterman mentioned 20t per month increasing to 40tpm when ore, not tailings, processed. In the end the total first half production was less than 30 tonnes. The only production start up information annonced was just over 5 tonnes from 17 October to 8 Nov. Derisory.
How many times will the choir say all mine start ups are delayed? The finance package was negotiated by an experienced lender and a supposedly experienced client with a reputable contarctor to provide the equipment. The package included contingency which has proved wholly inadequte. Simply no project development skills hence the market cannot rely on any of the targets Masterman announces: financial or timeline.
Either way it is a two year low.
So what is happening at this simple gravity process so called state of the art plant? Either Allmineral have completely misled the company and are incapable of meeting build and commissioning targets or Masterman has misled investors over the very same. Either way the combination has failed to meet virtually every milestone in the build program.
He can't reply if the plant output is insignificant. Hence the sp.
Abysmal. Where is 3 shift update? Finance update will not change this slide to insolvency. Production need to be > 50 tonnes since first ore to have any hope of recovery.
Well that's 80 % of the posters here covered.
Given that the plant achieved a capacity factor of 3% during the first 20 days of production what output is expected for December ?
Resources have been diverted - road building contract. No economics or FID published for Regua either.
So $1,000 / mtu = $192 M ebitda. Given that the project is delayed by more than six months and has been scrambling for finance to keep the lights on this is nonsense and pure speculation. Costs and production are unproven. The company has consistently failed to meet stated targets. Perhaps some discussion of the SP at an almost two year low would shed more light on the performance of this state of the art fully funded under budget development.
During the first six months of 2019 concentrate output was 29.3 tonnes (4.9 tonnes per month). This compares to the often quoted target of 20 tonnes per month (tailings output) and claim to double output to 40 tonnes per month on crushed ore.
Production before purification from first ore (17th Oct) to 8th Nov was just over 5 tonnes - equivalent to a capacity factor of 3%.
Our share price performance is abysmal, but not as bad as theirs is hardly justification for investment.
As expected play the man not the ball. The company record is indefensible. Pointing out that the king is naked is not allowed in Gitland.
Perhaps he will announce why the state of the art plant achieved a 3% capacity factor in the update since first ore on 17 October. Some clarity on why ramp up to full output has been delayed from Q1 2019 to mid 2020 would also be enlightening.