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Au9999

772 Posts.

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15/01/23

10:00

Post #: 65697627
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Originally posted by Mentalist123: ↑

Oldcar, you seem to know your way around this industry. Agree on supposition, recon could not get much closer mate ready for the thrust. Dissecting the last 12 months and the company's performance and exaggerations. making all these. predictions on datelines of expected accomplishments, and continuous failure, who is the culprit? Is it the Directors, who live in the cities, or the on-site management? The guys in the city couldn’t predict the weather let alone define a date of a gold pour. So is the MD at fault, for predicting an actual day and saying gold pour every 7 days from his predicted date, (among ago. Should be going 4th gold pour today)or the manager of the process plant? To me seems that the process plant suffered a big failure. ( again speculation)After the GAM plant sat unused for4 years, bearings would all be dried out in the heat, would it be the process manager, who never had a maintenance crew? I’m told that plants are hooked onto computers that declare overheating or bearing failure or overheating etc. So we all know sh#t happens but seems like big failures in TBA on Cloncurry seemingly continuous management failures. Then not disclosing the problems to shareholders of failures has added fuel to the fire and created all the speculation. Look for all we know there may not even be a failure of the plant, maybe short cash for diesel, we just don’t know. If it’s a major catastrophe we can blame TBA, it’s not our plant, we pay $110k per month for a reliable plant. We need to sue for losses if turns out this was caused! Who should we point the bone at? Let’s have a poll! Directors, on-site management, or owners of GAM? I’m a stable ATM! Errr, ummm aaah!

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I doubt there is any liability associated with the GAM lease for loss of operations.
Obviously depends on the contract conditions, but I'm guessing TBA would not be responsible for fixing major plant failures, however its almost certain that the contract would specify that the GAM is not liable for any costs or loss of revenue resulting from plant failures.
TBA probprobably wouldn't have to pay the lease for the period the plant is down, but they'll still need to hand it back in March regardless of processing progress.

For me responsibility is solely with management. Yes they'll get information from the field but they are responsible for making the decisions. It appears they have put all their eggs in the basket of a 6 month lease of a non operating plant with no contingency. Hence one problem brings the entire Co crashing down.

TBA Price at posting: 2.6¢ Sentiment: Hold Disclosure: Held
2 Upvote

2 Great analysis

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