OK, so Salazar did flag the Q2 costs would rise due to the Arenal->SG underground transition.
Not sure what investors expected but is an AISC of $1,345/oz actually a cause for celebration?
It’s up by over 30% from Q1 when it dipped bel0w $1,000/oz.
Much the same story for operational costs; they were sub $700/oz in Q1; $914/oz Q2.
The share price has popped from 11-something to 16.3p this morning on the back of an inconclusive rally in the POG and in anticipation/realisation of these results the past 2 weeks or so.
Yet, when the POG was enjoying its Bull run in the $1305-1375 range, the sp struggled to beat 20p.
So, relative to that, 16+p looks weirdly optimistic.
Sure, there’s going to be better production stats from SG West underground in Q3 and moreso in Q4; but there’s only about 30k of gold to come out before the next $several-million of CAPEX is required to develop the SG Central deposits mine or where ever is exploited next.
Nice there’s $5.4m of cash in the bank; hope it gets built up further before the next development phase commences.
Nothing new of moment on the exploration/reserves front in these results; guess this must be some kind of relief rally on the SG West mine production actually going to plan, plus some optimism for the POG in 2017.