GCY 1.82% 54.0¢ gascoyne resources limited

" ask because Mr Kerr’s appointment as ‘Executive Director...

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  1. 23,765 Posts.
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    " ask because Mr Kerr’s appointment as ‘Executive Director Mining Operations and Development’ seems to fill the category you were aftera"

    It is still a position subordinate to the MD , Kerr was appointed last November , so guess he had plenty of time to analyse the mines scheduling of ore , mining started in March , but the share price has dropped off a cliff since late May, due I feel to a perceived slow ramp up in prodn.
    Why was ramp perceived as taking too long ?
    I can think of a couple of reasons :
    GCY or more likely the Contractor was under capitalised for the project (sure they are established but they are also expanding ) .
    There was a misallocation of machinery ie was exploration taking precedence over mining , and Kerr due to being a subordinate was unable to get the contractor to allocate sufficient machinery ? It was interesting John Dryer (a mine engineer ) resigned in April could he see what was going to happen and was unable to prevent it ?

    I do like the long term prospects for GCY however those prospects can only be realised from positive cashflow at Dalgaranga , each incremental tonne mined lowers the AISC for following tonnes so there is a compound effect , same goes for further exploration not only is LOM increased , but the added advantage that incremental increases in grade also compound on profitability , and if mined early that grade compounding effect is further improved due to the time value of money .
    It is a balancing act in allocating resources between mining and exploration , maybe the likes of Sally Layman can help in determining the correct apportionment of funds to each endeavor ?
 
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