Heiko Felix Ihle's questions to Americas Gold & Silver (USAS) leadership • Q4 2019
Question
Heiko Felix Ihle inquired about the impact of collapsing oil prices on the company's 2020 fuel budget, the actual fuel spend in 2019, and the typical lag time for such price changes to affect on-site costs. He also asked if the company was considering hedging its fuel exposure.
Answer
President, CEO & Director Darren John Blasutti explained that fuel typically represents 40-50% of open-pit costs and 15-20% of underground costs, with a 3-month lag for price changes to filter through. He confirmed the company would seriously consider hedging fuel if favorable opportunities arise. COO Daren Dell added that the feasibility study used $2.00/gallon for diesel and a $0.10 move impacts costs by about $0.04 per tonne moved at Relief Canyon.