I thought the reason we had a local (National) partner was to smooth out the government wrinkles and ensure the correct paper work was in place. Things like the forestry permit to use their roads and such like.
Also I think the company has done a good job of being not only a good local employer but also a good local neighbour helping small business grow and thrive in fact the right things to be seen as a guest company in their country.
The tonnages that need to be mined and brought to the surface in this mine are not even close to what we do here in Australia and the fact that they fail to achieve their own targets is nothing to be proud of. For executives of this company even to think they deserve a reward for their service is comical beyond belief. I dare say when they set the targets they feel they are certainly achievable and are probably below what could really be achieved if they did put in the effort. That is the most annoying part of this business for me.
In my own private business we assembled large mining trucks for the big companies Cat and Euclid in the day. The transport date for these trucks was planned 15 to 20 weeks out, police escorts were required and often power supplies cut off from homes and some roads closed. So we could not miss that departure date. We worked whatever hours were required to complete the job and make the loading out date. In twenty years we did not miss our set targets. If others here think I am being harsh I’m sorry I ask nothing of the KRM people that I would not ask of myself. After all it’s not like I set the targets they constantly miss but they do!!!
The difference I feel is in my business it was my money and it seems to me that whenever politicians or management are spending other people’s money they have a totally different attitude towards money. I would step into the job of Scott Huffadine for half the salary and show them how to run a company if they wish!
There are plenty of Gold miners making money with a great deal lower grades, conditions and higher labour costs; this company really is letting its shareholders know it too! One may wonder if they are working towards some other agenda because building shareholder value does not seem to be high on their list!
Maybe they really want to own the whole thig outright and are purposely trying to get rid of the shareholders. Problem there is the next time they run out of cash they won’t have the shareholders to call on like some rich uncle!
Or maybe it’s a case of: “You only get one Kerry Packer in your lifetime”. And we have had ours.
Cheers and very best regards: Andy
KRM Price at posting:
19.5¢ Sentiment: Sell Disclosure: Held
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