DCN 1.88% 40.8¢ dacian gold limited

Ann: Production Update and FY 2019 Guidance, page-10

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  1. 275 Posts.
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    Because equipment problems are unplanned... I drive a tractor a lot and other bits of farm machinery. I plan out what I'm going to do, and then a tyre gets punctured by a fencing staple. Naturally I'm pretty annoyed, but I know its just a delay not a problem. Unfortunately getting a tractor tyre off takes a long time and it needs to be properly patched. If it is really bad, I need a new tyre which needs to be brought in as unfortunately my Hi-Lux tyre won't do the job.. overrall. it can bugger up anything from 1 to 3 days depending on the problem.. now extrapolate that out to some specialised mining gear on an isolated mining site.. It happens, can make a meaningful impact on production, but over a mine plan it happens and is planned for.. there will also be months where they'll run ahead of plan. If it is a problem caused by maintenance or training issues, same thing - they'll have taken steps to fix that and ensure it doesn't happen again. All I'm trying to say here is that equipment failures are noise, that the mine plan is working fine, grades and tonnes are as expected (excluding a breakdown), then there is really nothing to see here except some people running around making a mountain out of a mole hill and a buying opportunity.
 
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