The Komodo Dragon

The Komodo Dragon

I first came across the Komodo Dragon investing in the Mt Munro Gold mine of Indonesia. An unattractive and dangerous looking beast to sure, but one is lulled into complacency by its slow moving and slow thinking nature. Not harmless, but surely no threat to an agile shareholder.

Once bitten, a company might think they escaped any real harm other than a few puncture marks, so long as they keep an eye out and stay a few steps ahead. Alas, the Komodo Dragon has a poisonous bite, and it follows its prey for as long as needed until the poison does its work, and the company collapses.

It looks like the Komodo Dragon has struck again lol. All a coincidence I’m sure. Unfortunately, the board member only has experience in poisoning and feasting on victims, not disposing of the carcass.

This is a $7.5M plus repair expenditure cost that MLX didn't need to say the least. Produed 185t per day of Cu in concentrate in Feb (5,177) which was a 28 day month. March is 31 days so would have expected to produce 5,700t Cu in con before taking account of expected incremental production improvements. Based on 185t/day Cu con, looks like the power went out over the weekend ~2 Mar and stayed down for 9 days. Math is supported anecdotally by share price selling down starting on Mon 4th Mar.

I would be bit upset if I was buying into an uniformed market, especially recently. Looks pretty clear that the market was uniformed except for the sellers with inside knowledge. Continuous disclosure is just as much a joke as it was back in 2012/13 for Straits Resources, some things never change in this casino.

Good Luck