Inca One Gold (IO.V) released a new production update, and it looks like the company has finally found a good rhythm as it produced 1,224 ounces of gold in April from a total of 2,539 tonnes of ore that has been processed. This means two things. First of all, the average grade of the mineralized rock appears to be in excess of half an ounce of gold per tonne. And secondly (and this is even more important than the average grade); the Chala One plant was operating at an average of 85 tonnes per day.
But it gets even better: the Chala One facility also ran at a throughput of in excess of 100 tonnes per day for 16 days, reaching a maximal throughput of 116 tonnes per day, indicating the technical performance of the plant is top-notch.
As you might remember from our previous updates, Inca One’s bottleneck was the purchase of ore as working capital constraints and a longer-than-expected working capital cycle reduced the company’s ability to buy more ore for processing. After several capital raises and debt conversions, these issues have been overcome as Inca One has purchased 10% more rock than it processed in April. This increased the total size of the stockpiled resources to 1,800 tonnes. That’s a comfortable position as this allows Inca One to cover any temporary shortfalls in the future.
The higher throughput should result in Inca One reporting a company-wide positive cash flow, so we are looking forward to see the company’s next full financial results!