The company has agreed to sell its Ballarat assets to Castlemaine Goldfields for $4.5m plus a future 2.5% capped production royalty, the broker putting the loss on the investment down as a poor management decision and one where no justification for how the error has been made and what can be changed has yet been give.
This is something of an issue as the company remains acquisitive but judgement in this regard has been poor so far in the broker's view.
On the news there is no change to the broker's Underperform rating.
LGL Price at posting:
$2.91 Sentiment: None Disclosure: Held
