sa power problems, page-4

Just read through the half-yearly to see why the sp has slipped - it generally does after quarterly's etc where they have to admit to the poor performance of their operations. HVH is now in mothballs it seems and Mogale produced just 10577oz's for the 6 months (which they stated was slightly below budget). Bear in mind that Mogale should have now been producing up to 120000oz's per annum according to the initial plan and providing a profit of over $80m at current gold prices - so saying that 10577 was slightly below budget is gilding the lilly (ever so slightly). This is the achilles heel of Mintails - they appear to be operationally inept and until they start delivering what they promise, the sp will be restrained no matter what forecast figures they provide in their presentations. Obviously Mogale is never going to deliver what was promised so we will have to see what happens with Ergo/Wergo for them to prove that they can run a plant efficiently.
On the positive side they seem to be making reasonable progress on the construction side of things - it would be nice if they were slightly ahead of schedule there.
I no longer hold these but will look at revisiting them should they start delivering on their promise/s.