lack of confidence, page-12

This company has had plenty of problems partly due to the lower POG combined with escalating costs for the industry and partly due to the miscalculation of costs for Murchison.
Now one of their problems (as Loki has previously pointed out) is going to be that much of their cash will be re-invested in capex for developing multiple new deposits, many of which have very limited mine lives.
I wonder if they are better off just sticking to the original Mt Monger u/g mining to maximise free cash flow and returns for shareholders. Only problem there would be that they would need to put another plant on care and maintenance and more jobs would be lost. Eventually I see the POG gaining significantly and investment in developing more deposits would be well worthwhile so perhaps just keeping everything going as is without laying off staff is the better option while waiting for more sustainable gold prices.
Current management were the ones that made this company. The merger now seems like a bad mistake as does Murchison but to be fair how many investors here expected to see POG drop this far from its highs and how many expected costs across the industry to rise so much over that same period? Investors were calling for growth while POG was rising. Now they are complaining. The IGR merger seems like a bad move now but long term who knows? There is obvious strong exploration upside and assuming POG does rise again they can then begin to explore the region to define resources. They might even need to expand plant capacity years down the track.

I think talk of gold price tanking is without basis. The price has stabilised quite a lot over the last 6 weeks despite most investment banks still calling for lower prices and despite the Fed continuing to taper. It seems to me that every realistic possible negative for gold is more than factored in already.

India is making early moves to further easing of restrictions. Following this just announced move “with immediate effect” it is expected that “Legal monthly imports may soon increase by another 10-15 tones, from the current 20 tones” Any significant easing now and further easing later may have a multiplying effect. Indian imports will rise adding to demand but also improving sector sentiment which may lead to investor selling reversing to investor buying. I.e. the opposite to what we saw in 2013 when Indian restrictions would have added to negative sentiment which saw 900t outflows from ETF’s alone.
"Once Modi is sworn in, we expect more relaxation on gold imports," said Bamalwa

http://www.reuters.com/article/2014/05/21/us-india-cenbank-gold-idUSBREA4K11N20140521?feedType=RSS&feedName=GCA-Economy2010