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[jaynesdad] 28/2/2019 08:12

Was out all day yesterday so catching up on some of the excellent comments made.
I am on the side of the posters who want Tavsan developed asap. If everything goes to plan (which they rarely do) then developing Tavsan should not mean a new loan soaking up net revenue from Kiziltepe. Any loan repayments due to new plant at Tavsan are to be delayed until production there commences, so will effectively be self funding for the 1.1 years it takes to repay. Someone asked where this figure can be found, I think from the presentations available on the AAU website, I have also heard it in the face to face presentations I have attended. Following Tavsan loan repayment (say 2022) there will be lots of cash being thrown off by 50000++ oz production from Kiziltepe and Tavsan combined. Happy days indeed. I believe that a 'reduced' plant is to be constructed at Tavsan with a form of concentrate being trucked to Kiziltepe for final processing. makes sense given its limited life span. It will also be easier to build as Kiziltepe involved lots of earthmoving where Tavsan wont.
Off topic I am fully expecting a second ball mill to be announced at Kiziltepe, and imo we should welcome that - it will allow more output from the plant and also allow some redundancy in the equipment.

[jaynesdad] 28/2/2019 07:51

Morning
Back to Pauls comment yesterday morning, my hasty reply and Biggles more considered one. I was wrong, effectively the Gold price achieved (and hence revenue) is adjusted to account for silver production so that we only work in terms of Gold oz produced. Similarly the costs are adjusted for the cost of the processing of Silver so that again (total)costs are expressed per oz of Gold production. That though seems an anomaly as logically that would increase costs per oz Gold produced (due to the Silver) not reduce it to the fantastic level currently being enjoyed. So still confused, and I thank Paul for raising it. Maybe one to ask the BOD at the nxt presentation, though I suspect I would struggle to understand the answer!

[ironstorm] 27/2/2019 18:46

Permitting is always a problem. But even if they just hinted that once the permits are in, it's full steam ahead. Now that's what I want but tbh not sure it's their style.

[bigglesbingham] 27/2/2019 18:46

Cheers ha ha

[soulsauce] 27/2/2019 17:21

Yes afaik.

[bigglesbingham] 27/2/2019 17:15

Do we still need permits for tarsvan I lose track we have that much positive happening at minute ha ha

[soulsauce] 27/2/2019 17:13

And a little thing called govt permits including forestry permits.

[bigglesbingham] 27/2/2019 16:43

The reason not proceeding yet with tarsvan is logistics and how to get the stuff down I believe rather than choice. Can't for life of my remember what reason was but procea looking into it.

[ironstorm] 27/2/2019 16:37

I would like to see them proceed with Tavsan. At this rate even without paying down the existing loan. Get another loan from the same guys with repayment starting in 12-24 months and get started on it.

No need in mind to wait until the current loan is paid down completely. Unless excessive prudence.

Then use the cash as BB says for Salinbas.

[bigglesbingham] 27/2/2019 15:00

Sandstorm have 2% royalty I believe a point which has always pleased me ie they are firmly on their radar.

[bigglesbingham] 27/2/2019 14:58

At and IRR of 80% and min four year mine life and 12 month deferment of repayments it would make sense to find tarsvan by debt and concentrate available funds on salinbas. MDV wants to through kitchen sink at salinbas but KS wants to build a very strong gold producer. Don't see why you can't have both 50/60 k ounces in 2 years sell salinbas project and find another. Just my feelings having spent some time with them. The delay on tarsvan is the logistics and process ( I can't remember exactly but it was in proceas hands in October).

[swallowsflysouth] 27/2/2019 14:53

Another couple of points from the operational update -

1. Production of ore from the open-pit achieved an average rate of 19,852 tonnes per month over the period, with a peak rate of over 26,840 tonnes achieved in October.

2. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

The ore production figures show that in one month they achieved 26,840, if we x 12 = 322,080 which is a much larger potential figure than i have seen anywhere else.

Interesting connection with Sandstorm.

[soulsauce] 27/2/2019 14:47

It that an assumption catsick or have you seen that somewhere and if so can you provide the link.

[shortarm] 27/2/2019 14:23

Come on Charles, stump up and pay the 2.05 Won't matter either way in a few months time....

[charles clore] 27/2/2019 14:13

They are not letting me buy any under 2p

[catsick] 27/2/2019 14:03

Tasvan fully pays for itself in 1 year, it can be built in a year just using current excess cashflow although the banks will be bending over backwards to lend given the current loan will be gone soon , why would you not build it ?

[soulsauce] 27/2/2019 13:22

Must say I am neutral on Tavsan Shortarm. I would sooner output from RR be boosted by ore from Kizilcukur and Irvindi with another ball mill and have a few years under our belt without debt.
I don't think they appear to be in any rush with Tavsan.

[shortarm] 27/2/2019 13:14

And Tavshan go ahead :-)

[soulsauce] 27/2/2019 13:10

Salinbas guidance?

Production guidance for the year from RR and commencement of drilling in Salinbas.

[charles clore] 27/2/2019 12:52

Kirbs - agreed.

p.s. - that 5 year chart is just begging for a higher high!

[kirbs4] 27/2/2019 12:00

My hope here is 3 to 4p by the end of March after Salinbas guidance. Every PI sell i see now i am taking as positive as it is another chunk that wont be sold for profit on news. The sooner we replace the PI's who wanted to double their money from 1-1.5p the sooner the value here can be recognized. I'd rather we were stagnant at 2p with weak holders being replaced by new holders than stagnant on positive news when we should be realizing potential.

[charles clore] 27/2/2019 10:51

Swallows - agreed

[swallowsflysouth] 27/2/2019 10:30

Charles, yes i agree which means either there is no big seller or it is a consortium working together. Just have to sit it out either way.

The momenteum is building up and i find it quite fun to watch as well as frustrating. The upwards pressure will eventually win.