I would expect an announcement if guidance is expected to be impacted by this weather system.
From my calculations there were enough development draw points, drifts constructed to Dec, at the Syama UG developmemt to meet DFS monthly mining rates of 200t/month for at least two or more months so any problem at Syama UG would derive from slow commissioning or the automated drilling system or problems with rock breakage at the draw points. The former problem is one that should be easily overcome as there are hundreds of these drills operating in the world, the later problem is far more serious and really the only major risk to the Syama project IMO, apart from achieving the targeted recoveries through the sulphide circuit.
I think the company can survive any weather set back at Ravenswood and even a slower than expected commissioning cycle at Syama, as the spend at Syama so far is nowhere near as large as AQG's Copler project and the debt is also nowhere near as large and that company is getting through.
I must say however that the director selling and the "director related" fund selling has me a little concerned. The director selling can be explained for private reasons, ie wife and family are high maintenance, need money for toys, need money to pay tax, buying bigger house etc etc, but the fund selling, particularly if the directors are related to the fund, is a different story.
I'm changing my sentiment from buy to hold based on this change in substantial holding notice. Shareholders can't be expected to be bullish when some of the directors are giving the opposite signal.
I'll wait to see the March quarterly, and particularly to see if the mining rate at Syama UG meets my expectation of between 320t and 355t for the quarter, before reviewing my sentiment here. Esh
RSG Price at posting:
$1.03 Sentiment: Hold Disclosure: Held
(20min delay)
