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Open Pit Production to Resume?

lse:omi

#1

POG just hit $1,370/oz.

An ongoing average of $1,300/oz pa is sufficient for Salazar to give the green light for about 15k pa of local [to the mill] open pit production; typically with a historic operating cost of ~$1,100/oz.
So, a possible return to 50-55k production rather than the current 35k.
Plenty of spare mill/tailings capacity. Mothballed equipment hopefully; so the marginal All In Sustainable cost not a lot more than the $1,100/oz operational cost.
In any event, obviously the ongoing 35k production will be generating a lot more profit than previously.
Back in April, an analyst projected [based on $1200/oz POG] :
“We expect EBITDA to rise from US$1m at the interim stage to US$7.9m by year end,”
Surely we can now expect much more; well over $10-mn just for 30-35k production.
Add to that for renewed open pit production. Say 2 qtrs = 8k gold @ $200/oz net cashflow; add ~$1.6-mn to year end EBITDA…total of at least $12-mn looks attainable if POG averages $1300/oz from here.

Prospective cash flow to fuel Waymar-Anza [Columbia] development/production; maybe starting with a small operation [but at least 10k pa gold] that can be brought into production within 2 years.
From q3 results report:
“…the high grade Anzá project, where Orosur is currently evaluating a number of options to advance the project via a smaller higher grade underground mine.”

TS