My speculation; is that the company has secured the loan facility on the basis of needing at least $5M to crank up Kavanagh.
The problem with Coyote has been that past actions have been taken without rigorous process and with short term focus. Many significant cost reduction and process improvement have been undertaken in the past 6 months that have stabilised the operations and improved the economics.
Kavanagh is the game changer but it needs to be done right. That means a resource and a mine plan that is fully costed, optimised and not ad hoc. This is a major culture change for the company that is being enforced by the board and management. Resources and mine plans take a lot of detailed work by boffins and must be accurate. So my speculation is stand by for a resource upgrade and mine plan for Kavanagh together with a decision to mine by the board.
TAM Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
