Inca One Gold (IO.V) has announced another production update and in the period between January 8 and February 18, the company produced 1,187 ounces of gold as well as just over 942 ounces of silver. This equates to almost 30 ounces per day and 1,000 per calendar month which is an excellent achievement given the fact the average throughput per day was less than half the capacity of the mill.
This means we can look forward to see further production increases towards the 2,000 ounce per month mark as Inca One’s average grade is higher than the 0.8 oz/t we were expecting. The average grade in the reported period was approximately 0.9 ounces of gold per tonne of ore and Inca is now aiming to secure more ore at 1 ounce per tonne. This would increase the output and obviously the company’s operating and profit margins as well.
The mill is currently operating at 60 tonnes per day and we expect Inca One to be free cash flow positive any day now. You can read our site visit report on Inca One HERE.
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Disclosure: The author holds a long position in Inca One Gold. Inca One also is a sponsor of the website. Please see our disclaimer for current positions.
