So Arenal has delivered its best, just when the POG was running above $1,300/oz.
Sub $700/oz operating costs and 10k-oz gold for the quarter suggest the grades were very good.
Wasn?t expecting this as Arenal is almost at the end of it?s current run of production.
The plant switches to the new San Gregorio underground mine in November.
Maybe a little of the gold was extracted as the SG ramp and access tunnels were developed.
These results, along with the recent exploration ones auger well for extensions to Arenal in the future. Indeed the whole area between and around Arenal and San Gregorio looks an inviting prospect.
The extra revenues must have come in handy as San Gregorio development completes.
On top of the transition interruptions, guess there will be a leaner period going into Xmas as the SG production ramps up; hence Salazar has not changed output forecasts or costs:
?The Company’s forecast production guidance for FY17 remains between 35,000 to 40,000 oz of gold at operating cash costs of between US$800 - US$900/oz.
As in the past, variations in production and unit costs are expected to occur, quarter on quarter, as the mine plan draws ore from multiple sources at varying grades, stages of development and stripping factors. The Company expects to have higher unit costs in Q2 as underground staff and equipment are transferred from the Arenal UG operation in its final months of production to the SGW UG development which is expected to commence production by the end of November 2016. ?
That?s OK, steady as she goes looking forward.
Expect the share price would have popped a few pence over 20p were it not for the concerns over the POG and its tenuous hold just above $1,250/oz and just below the rising 200 day ma. Picture muddied a bit to extent this largely reflects a stronger $ of late, which is of course good for PM miners.
Still buy on the dips methinks + sell some on the up-spikes. The volatility easily trumps the spread. But build/retain a core holding.