Expectations, page-92

I don’t short but my interest initially was to possibly take a position in the company assuming ramp up etc went well. That said, if someone shorted the company when I initially posted last Oct raising the quality issues (https://hotcopper.com.au/posts/35978609/single) you would be up 30% and slightly up from my post last week (https://hotcopper.com.au/posts/37173931/single).

It became pretty clear early on that they would have quality issues and what also changed since then the market for zinc concentrates turned into a surplus one, one where smelters can be extremely picky and can delay sales or say they are not interested in the product they are offering on a spot basis. Unless the zinc concentrate market gets a lot tighter or they are producing completely in spec I will not take a position. Too much of a risk of a cap raising to keep them going while they are ramping up and the product they are selling is not standard specification in a surplus market.

Let’s talk at the next quarterly - my bet is that they will be blowing through their cash this quarter as well and don’t be surprised if they rattle the can before the quarter is done.