On 11/04/2012 the company stated: "The Company is aware that, given its plans to increase production and bring forward its development of the hard rock phase, there are certain long-lead time equipment items that need to be ordered 12 to 15 months before installation.
Later, in August 2012 when they announced the Mota Engil placement they said: " The funds ($2M) will predominantly be utilised for the feasibility studies and for deposits of long lead items of equipment."
If that was true, the long lead items would be ready for installation by August - October 2013. As it turns out, this somehow has "slipped" to Jan - April 2014! HUH???
Look at throughput, the never ending disaster. "Currently" producing 1500 MTU/month. That's less than 1/3 of planned throughput, 10 months after production start and 4-5 months after tie-in of an upgrade that was supposed to fix the serious underperformance. Months ago they said they were approaching designed throughput! This statement in particular has absolutely CRUSHED the rest of their credibility with me.
Look at water supply. "Water – Existing facilities expected to provide for planned operations." HA! Didn't they have to halt production due to lack of operating water during December? That was for the "currently 1500MTU/month" operation. And these facilities are supposed to support a 20.000+MTU/month operation???
Look at recoveries: "Strong recoveries – approx. 50% of tungsten in feed." HUH??? How does that compare to what they had said late last year???
Look at the APT price chart. Why did they cut it at $380 APT in October??? The question whether deterioration or stabilisation can be answered clearly. It touched $300 just recently.
Look at operating expenses that were supposed to be the main advantage of Mt. Carbine. The now released $137/MTU figure is average at best!
CNQ Price at posting:
7.3¢ Sentiment: Sell Disclosure: Held
