Originally posted by jayneen
errr - I think you will find they have moved from development into production. Management are now reporting tonnes of ore mines and milled as the key statistic. They have “developed” the 15km of decline and draw points and tunnels required to start the cave. Do you want them to keep reporting on a statistic that is no longer relevant?
perhaps you should identify that they no longer report on the tonnes mined at the northern satellites (now closed) and accuse them of hiding critical information?
The relentless focus on the identification of management malfeasance is, in my view, totally unwarranted in this company.
perhaps it is a product of current political discourse which separates one party to another by an idealogical divide that precludes any assumption other than the other side are cheats, scoundrels, and charletans.
my assessment is this company and it’s management are that they are very honest, very capable, and are trying very hard to make a success of the company for the benefit of shareholders.
Conspiracy theories aside I see no reason to doubt managements intergrity.
in any case, the company has very clear disclosure on all key metrics in order to make a value assessment (tonnes, grade, recovery, cash, bullion, earnings, cashflow, debt).
In the the next six to nine months the truth will out.
The market, and many posters, are either confused, scared, or actively backing them out (shorting).
Personally I am backing them in and going long. This is exactly the opportunity I look for: a story discounted in the market which I think will come good.
Lets see what happened from here.
as always, good luck!
J9
jayneen
I have a couple of questions for you.
Question One: Do you believe the Syama UG project is over budget?......If you don't believe it's over budget how do you explain the disappearance of the $150M raised in 2016 for the development of Ravenswood that didn't happen, the disappearance of the free cashflow that was supposed to cover the development of the mine, and the need for a further US$150M in debt finance still without the completion of the initial mine development?
Question Two: If you accept that there has been a large budget overspend where do you you think that overspend has gone?
I do believe there has been a significant overspend and I do want to understand where the money has gone. These are two very big questions and there has been little explanation from the company. When sufficient explanation has NOT been provided, to hold the view that we should take the managements reports on face value is just not good enough if you have a considerable amount or money invested in the company........And my raising of the development meters reporting
was an example of what may have been an early indicator of problems if you question changes of behavior in reporting rather than just reading the words of the report and taking them at face value..... It was my response to what I believe to be an irresponsible statement that 'announcements should be taken at face value'. The change in development meter reporting actually happened over 6 months ago and here we are with significant unexpected debt, a strongly declining price in a very supportive gold environment, and board members selling significant numbers of shares..........
......And regarding the development of the mine, if you re-read the DFS your will see that the development of the mine isn't finished.....not even close. Development progress in terms of mine meters don't even peak until next year and then continue at around current levels until 2024...... My view is that problems have been encountered that have significantly slowed the mine development advance. We have no company announced information on this, but it does fit with recent events and market reaction. So
NO we haven't moved into production.... and any problems that
may exist in the development operations could have a long and significant impact on costs going forward.
So again considering question two above, if the overspend isn't a result of problems encountered with Development what is the cause of the overspend?....
If you have another explanation that makes sense then please share as I would be back buying more shares like a shot, but as things stand this is the best explanation I can come up. Risk management is a major factor when investing in gold shares, and for me recent events show risks have gone up. The potential here is obvious and I do want to increase my investment, but until the company actually explains what the problems are, or until it becomes self evident that they were just expensive teething problems and no more funding is required the risks are too high..........Is it really a coincidence that insiders are selling significant numbers of shares.
(20min delay)
