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02/05/17

18:19

Post #: 24419343
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Originally posted by IceyDoctor ↑

Thank you to those who stuck to the topic of cash-flow or provided new info and avoided ranting.

Speculator, Marthis and others. You seem to find potential their reading between the lines in the quarterly, which may be true. What I see screaming in bold print however is that the drop in production this quarter was not mostly a one off due to rain, if that were the case the production should be back on schedule for the June quarter since they actually mined quite a lot. They are either not finding the gold underground according to their resource map, or else they are not able to get in and extract it. That is what I would like management to talk about, rather than firing and hiring new silence.

Can you answer then why the June quarter forecast production has dropped about 40% from 26 to 16koz?
It seems to me like Bortgm said they are having major problems with the underground and so lack the high grade ore.

Their costs are forecast in the finance section of the quarterly. As I stated you already need to factor in a gold price of AUD 1700 just to get them to break even on their mining costs, and then there is still $6M spend on exploration so I do not see how they will avoid a cash burn.

If they plan something else as you talk about then why do they not put it into the quarterly forecast? It is equally as irresponsible for management to deliberately under promise in order to boast overachieving as it is to overstate the forecast. What an investor should demand is an honest appraisal by management in order to correctly value the company.

I am still holding, mostly based on expectation for 2018. Only a slight chance I see of a turn around next quarter if the underground problems turn out to be an anomaly as they get deeper.

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Well it is 16000 oz if you adopt the low of the guidance. 21000 oz if you adopt the higher figure. Now if they pulled the 21000 off I think it would indicate a turn around of fortunes.
But overall well shy of what was promised prior kickoff but being the eternal optimist this shock may knock some of the hubris out of the board and they may knuckle down for 12 months and get things going as expected.

BLK Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
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