KAU - Kaiser Reef
- Thread starter System
- Start date
-
- Tags
- kaiser reef kau
Underground high-grade gold miner KAU reported a sharp lift in gold production in the Sept. quarter from the June quarter with costs per ounce falling, metrics that are generally welcomed by investors.
But high expectations for the Sept. quarter held by some weren't realized, weighed down by lower grades of ore processed and some commissioning problems at the Maldon mill after extensive rejuvenating capex was completed in June.
"Mine production and investment remained heavily focused on the development of the mining fronts to support the increased production rates and some of the higher-grade lodes were not shipped to the mill for blending with lower grade stocks until the end of the Quarter which has created some timing issues for revenue during this reporting Quarter," it said.
"Production and recoveries were also impacted by commissioning challenges at the mill associated with calibrating the new cyclones.
The cyclones are now operating well and the mill is seeing an improvement in both grinding and classification efficiency.
This initiative will also improve stability and we are seeing improved recoveries going forward, despite early teething challenges," KAU reported
In the Sept. quarter it produced 2,940 ounces of gold for revenue of A$8.7 million at a cost of A$5.9 million.
The same figures for the June quarter were 2,075 ounces produced for revenue of A$6,1m with costs also A$6.1m.
Grades of gold processed in the latest period of 7.83 g/t fell from 8.13 g/t previously.
Cash at bank rose to A$3.8m from A$3.2m previously..
KAU's SP, which ran up late last week, took a hit today dropping 2c or 10% to settle at 18c.
If nothing else changes during the December quarter, the run up in the Australian dollar price of spot gold to now be quoted at A$3,139/oz should ensure improved results in the current period.. KAU sales averaged A$2,951/oz in both the June and Sept. quarters.
But high expectations for the Sept. quarter held by some weren't realized, weighed down by lower grades of ore processed and some commissioning problems at the Maldon mill after extensive rejuvenating capex was completed in June.
"Mine production and investment remained heavily focused on the development of the mining fronts to support the increased production rates and some of the higher-grade lodes were not shipped to the mill for blending with lower grade stocks until the end of the Quarter which has created some timing issues for revenue during this reporting Quarter," it said.
"Production and recoveries were also impacted by commissioning challenges at the mill associated with calibrating the new cyclones.
The cyclones are now operating well and the mill is seeing an improvement in both grinding and classification efficiency.
This initiative will also improve stability and we are seeing improved recoveries going forward, despite early teething challenges," KAU reported
In the Sept. quarter it produced 2,940 ounces of gold for revenue of A$8.7 million at a cost of A$5.9 million.
The same figures for the June quarter were 2,075 ounces produced for revenue of A$6,1m with costs also A$6.1m.
Grades of gold processed in the latest period of 7.83 g/t fell from 8.13 g/t previously.
Cash at bank rose to A$3.8m from A$3.2m previously..
KAU's SP, which ran up late last week, took a hit today dropping 2c or 10% to settle at 18c.
If nothing else changes during the December quarter, the run up in the Australian dollar price of spot gold to now be quoted at A$3,139/oz should ensure improved results in the current period.. KAU sales averaged A$2,951/oz in both the June and Sept. quarters.
KAU stars are aligning with gold surging higher & sp now @ 0.185c +12.12%
dyor as always
- Joined
- 3 May 2019
- Posts
- 6,182
- Reactions
- 9,669
US Gold @ $2,092 +$35 overnight!
AUD Gold @ $3,104 record highs!
Stars aligning for profitable gold miner KAU @ 0.17c
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Looking forward for this to rerate after the A1 mine upgrade and also the mill refurbishment. Should see some good progress as they are getting into fresh rock in the mine and lifting production. One of my tips for this years yearly tipping competition after they recently received an exploration licence, raised cash to fund drilling under one the richest pits ever mined. With modern existing infrastructure it’s an exciting opportunity for the future. Let the drilling begin
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Well not a great start for the year. Heard lots about staff layoffs, flooding and the price has been falling. All was confirmed in the quarterly with less tonnage put through the mill and also lower grade. On a brighter note, drilling has finally commenced at nuggety reef. One of the reasons I still hold and have been topping up while the sale continues
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Well things are going from bad to worse so far this year. Seems the market is not convinced that they can turn this around. Another sell off today and a couple of, what I thought were cheeky bids, got hit. Oh well the cupboard is now full. After all the money spent upgrading the A1 mine and mill, it looks like after 2 poor quarters they are still struggling. I think a clear outline for the future may be required but not holding my breath 
- Joined
- 21 August 2008
- Posts
- 2,784
- Reactions
- 8,524
Price has picked up since your post on the 1st Feb, is this the start ....... time will only tell.Well things are going from bad to worse so far this year. Seems the market is not convinced that they can turn this around. Another sell off today and a couple of, what I thought were cheeky bids, got hit. Oh well the cupboard is now full. After all the money spent upgrading the A1 mine and mill, it looks like after 2 poor quarters they are still struggling. I think a clear outline for the future may be required but not holding my breath
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Thanks @debtfree, been accumulating for over 3 years and not far from my average. Set a 5 year plan and will reassess in a couple of years. That’s my preferred holding time but do exit if / when I consider my original criteria has been met/ subject to change without notice. Always flexible with my timelines as I always get them wrong.
Sean K
Moderator
- Joined
- 21 April 2006
- Posts
- 22,017
- Reactions
- 10,998
Accumulating for three years? Yikes!
Looks like a mom and pop operation, how did you come to be accumulating this? Do you know the owners?
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Brought a small parcel originally for the NSW leases before they picked up centennial’s assets from the administrator. Went through centennials history before deciding to accumulate and could see the mistakes they made when gold prices were around $1600 Aud.
Only know of management’s previous history and am happy to watch this play out.
Having spent 6 years in Kalgoorlie (am a jeweller by trade) in the nineties I got to meet a lot of great people in the gold industry. The one thing they all say is if you want to find gold start where they already found it. The A1 mine is only ever going to fund forward plans. For me the exploration at Maldon is why I’m holding.
Could be something special there, only time will tell
Only know of management’s previous history and am happy to watch this play out.
Having spent 6 years in Kalgoorlie (am a jeweller by trade) in the nineties I got to meet a lot of great people in the gold industry. The one thing they all say is if you want to find gold start where they already found it. The A1 mine is only ever going to fund forward plans. For me the exploration at Maldon is why I’m holding.
Could be something special there, only time will tell
- Joined
- 2 September 2017
- Posts
- 84
- Reactions
- 176
Reply above
