Crickets... Funny how thigs are so much clearer in hindsight, and how much reactions to events help define our perspective of them. For example, I looked at the 10 July shipment release comments as some sort of 'confession' that the market reacted badly to, partly
because the market reacted badly. Now the CR is out, looking back the 10 July release wasn't such an obvious confession after all.
June 1st
Mining operations and mineral processing at the Wet Concentrate Plant occurred every day in May, though
mining throughput and production was constrained at times due to commissioning-related issues, including
equipment failures and plant availability.As part of the production ramp up process, the key focus remains on improving equipment and plant availability,
enhancing mine planning and increasing mineral recoveries in final product streams at the Mineral Separation
Plant (MSP).
July 10th
Production rates continued to be constrained during the month, due primarily to low availability of the Dozer Mining Units and
mining plant and equipment. These availability issues are being managed with the respective contracting
partners with plans in place to resolve.As part of the production ramp up process, the key focus remains on improving equipment and plant availability,
enhancing mine and tails deposition planning and increasing mineral recoveries in final product streams at the
MSP.
In retrospect, modest change in tone but no confession of issues particularly worse than expected... downgrade on account of no commentary on improvements, but not that much in it. I was looking at the share price and volume chart getting smashed, which gives the 10 July update a bas news connotation that really isn;t there. Comments were not that different from June, and the fact the share price only lost 1c on 7M shares sold that day is strongly indicative that commentary wasn;t any big downgrade right...
Yet 7M shares were sold, and sold hard from the get-go 10 July, and continued on for the week. The only thing that makes sense is STA used the shipment release modest bad-news release as cover to brief their favoured holders to get out while they can. I know, tin-foil hat stuff, but looking after those who ultimately vote him back in as MD still looks the most sensible explanation for the actions taken by STA, and the price/volume action since 10 July. Mid June sell down also on large volume coincided with major drop in ASX200, so that was more a tailwind for any steady sellers of production issues than private briefings...
Posting on STA today has made me feel dirty, and not just about the money. Going to try and wash it away at the pub, have a good night everyone. Hopefully Shaws are right, the sell off was already over done at 22c, so the CR won;t be too heavily discounted... although we all know what happens when a broker senses blood in the water.
GLTAH
(20min delay)