Selling has been a tad overdone. However, this should be a lesson to management because the market treats you harshly if you underdeliver and this company has consistently underdelivered. To revise output downwards just one quarter into the year is unforgivable. It generally means its unlikely to recover the lost output and there might even be more erosion in the coming months. Did they start on time at level 12 in the underground? You might recall that they did not downgrade output last FY until quite late in the year even though it was going to be virtually impossible to deliver the targeted output.
Hey, maybe new management HAS learnt the lesson and revised downwards early (take the medicine early and get the bad news out of the way early) and hope to deliver above revised target?? One can only hope! Half year report may give us some indication on how management controls news output.
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