Rerate must read

Thought I would re-post @Wheres-Wally post from the 15th Match.

This is nothing but a re rate. December Jan Feb were turn around months that led to the best AISC the company has achieved since the start of production. The market is loving it and the smart money has taken a position in the hope the improvements will continue. Will they continue? i beleive so because the proof is in the pudding. If you look at previous announcements dating back 8 months back you won't be able to deny BLK had a few rough months but never the less it was communicated to share holders and there were valid reason.

High strip ratio.

High over burden (waist)

Collapsed road way. Delayed access to the M4 ore until december 17.



Management promised improvements in decemeber quarter and even though the improvement were not enough they were improving the strip ratio and ounces mined per quarter.

Below you have the M4 pit which had a high strip ratios and lower grade ore which needed to be removed prior to reaching the higher grade lower strip ratio ore and by the way, if any newbies don't know what strip ratio is, its the amount of waist or over burden that is required to remove ore- example a strip ratio of 6:1 means they would need to remove 6 tonnes of waist to achieve 1 tone of ore) as you can see the blue line was the bad stuff and past the blue line is where we are at now. The goal has been reached higher grade lower stripping ratios much higher and better AISC.

Proof of turn around starts. Management explained the terrible AISC but investors were nervous, cash was running out even though light was seen at the end of the tunnel it was a thin line and investors started pulling out though i held because i could see how close BLK was to success.

AISC was high and the reason was again overburden which was close to being removed as stated in the below statement and low grade ore.


Also take a look at the Galaxy pit below the blue line showing the lower grade ore with a strip ratio of 19 tones of waist to 1 tone of 1.7gpt of ore.. this needed to be removed and was obvious from the begining. We are now under the blue line and you cam clearly see why the AISC has become so viable. The strip ratio has changed from 19 tones to 6.5 tones per ton of 1.9gpt of ore!


M4 deposit, high grade ore with very low strip ratio under the 19:1 ratio which is now 6.5:1....many more good years of profit to come.


Again below...not sure how many announcements did BLK release showing share holders how close they were to getting to the deeper ground, the even gave time frames which were all correct.

Higher investment of waist movements in sep17 quarter will lead to lower stripping ratios and mining costs in the reminder of FY18.

Below is proof BLK has been improving quater by quarter since production, more ore was processed every quarter. Problems encountered were high strip ratios and low grade ore which needed to be removed regardless.

Ok so we are told in the september quarterly report that all the effort of removing waist will be seen in lower stripping ratios in 2018...where are we now? 2018. What do we have now? Lower stripping ratios and higher grade ore .

We were told open pits expected to be cash positive in december 2017....where are we now? 2018. What are? Cash postive



IMPROVEMENTS AS PROMISED IN JAN 2018
CASH POSITIVE
AISC $1158
RECORD PRODUCTION OF 6500 OUNCES


Another record month below with lower AISC of $912 for the month.

I have tried to show the progress BLK has gone through and the very simple and understable reasons they had for the slow progress. I beleive management have earned their credibility by explaining it as it was and fulfilling their predictions imo accurately.

Next month will be better and the month after it and by the end of the year BLK will be a half billion dollar company minimum.

W.W