any chance?, page-14

I liked this project for the DSO grade, not the board, and thought the Bene ore was just some upside if they could do it and keep the costs down. I still like the project even with its challenges. All mines have challenges.

The project was, in some respects, a victim of the Iron Ore Boom in WA. All of the experienced guys were in WA having a great time, while the pretenders who were found out in WA crossed the border and stole big money jobs with WDR and wasted big dollars in the construction and procurement stage. That is an absolute fact.

Management actually had the head turned on this thing and costs were right down.

* Was the whole project rushed - Yes and this feeds into every other stuff up that I list below and those that I don't.
* Should they have tried to start mining right before the wet season - No. I suspect there was significant pressure from the bank to start putting some cabbage in the tin.
* Should they have used the original barging contractor - No. There should have been more due diligence of their capabilities for that kind of work.
* Should they have sealed the airstrip - Yes. This would have save millions in charter flights
* Should they have engaged Thiess - No way in hell. You can't send in the fleet they did to mine this narrow ore body. The big digger could barely swing around. There would have been no less than a dozen other qualified and experienced contractors who could have done it better and for less.

Someone will steal this asset and will probably have a party when they do. All of the hard work is done and there is a pretty reliable instruction manual out there that shows you not what to do.

It sucks losing money, a lot. Contractors and shareholders all the same.

Regards,

A-Team.