Up until the middle of last year, the company stated that Toms plant was cheap to upgrade etc. Then, suddenly they bought the Coolgardie project. Yes they will eventually mine there, but... if you look at all the costs to date, the price they paid etc, I have posted before, it will barely make them any money! They could have just as easily sunk the $10-15m straight into exploration at Mt Bundy. Maybe they would have 3m ounces by now!
If Toms plant is in such bad repair, they should just scrap it full stop. If you have a look at their August 2016 update, it states the new plan is to build a big bulk plant at Mt Bundy. Anyway, not here to harp on.
You are right in your last paragraph, but as above, if it all it does is end up being cash flow neutral, it basically wasted 12-18 months and kicked the can of how to make Bundy really viable.
Good luck holders.
PGO Price at posting:
4.0¢ Sentiment: Hold Disclosure: Not Held
