der User fasst das gut zusammen:
1. Production well below expected level for reasons that are not entirely clear - was it just due to pit wall subsidence or were there other factors that resulted in the lower volume of ore mined which resulted in mill being under-utilized. the mining operations are still underperforming and this is the key to becoming cashflow positive (assuming the higher ore grade is actually there).
2. Once again the grade of ore milled was well below expectations, another reason for the low level of production.
3. ASIC was not specified in the report and would have been over $2000/ounce
4. The report has not mentioned expected ore grade, costs and production level for the December quarter (and to end June 2018) - most likely the mine is still underperforming and they will produce less than 20k ounces in December Q.
5. Actual cash on hand is just under $8m + some bullion, while debt is $37m, of which $14.8m is due to be repaid this quarter.
6. Cash/bullion fell by around $10m during the quarter, (after factoring in debt repayment of $2.8m, which was offset by $1.8m in inflows from the issue of new shares).
7. Note the very high strip ration of 26.8:1 in the September quarter, way above forecast level - can one believe them that things will improve enough in the December Q?
8. Why did the secondary crusher need to be completely rebuilt this quarter - how bad is the rest of the second hand processing equipment?
9. The way BLK is trending they are likely to be close to running out of cash this quarter, even if the $14.8m in debt repayments is re-scheduled into a subsequent period. I doubt that that debt holders will let things get that close given BLK's payables level. That will mean that BLK will need to do a capital raising - they can use the Lind facility which will prove costly in terms of shareholder dilution.
10. Dixon needs to move on - the Chairman can no longer allow this farce to continue. He has no credibility left, and I doubt that the Denver Gold Forum would invite him back.
11. Forget about the 200k pa ounce expansion - BLK is in survival mode
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