After talking to every person I know I managed to find a guy I knew that knows a few of the guys that work on site and managed to get together and have a few beers with these 2 guys while they were on break in Perth recently. I was the tag along of these 3 guys however once we all had a few managed to have a very candid chat with the site guys as to how the job is going. They were very open with there opinions and it was very disturbing to hear their thoughts on the runnings of the entire operation.
It seems the general consensus is that the place is poorly managed and very loosely controlled. Their biggest gripe was the mining side ( where they work ) in that the contractors were gouging the mine in either poor performance or over charging. It seems everyone on site is aware of the money being made by some of the contractors and they are doing far better than the actual mine and other contractors for what ever reason can not perform which is having a flow on effect to production. I was told that the contractors were in effect hourly hired and not production based paid and therefore they were not stressed either way on production.
While these guys didn't seem overly worried and said they will just continue to turn up for their swing they did mention a few times they hope it doesn't close
I left the get together after a few hours feeling far worse than when I went in and it wasn't from the beers.
I will be writing to the CEO this week as I still have not had a return call and ask as many questions as I can and see what is being done to lower costs. The meeting I had confirms that seemingly nothing is or has been done to lower the AISC despite managements previous statements " that is will flow through next quarter".
Something needs to happen immediately here given last 1/4s Cash flow and cash at end of quarter.
100% focus has be on costs and the lowering of them to survive
Does anyone else have any thoughts?
MOY Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
