strong buy, page-6

I dont know what signaled jermaynew to sell, but I know what signaled all the afternoon selling. Around 1pm the sp was recovering nicely with buying at 17c commencing. Then out of the blue at 2pm on T$ Phil tells everyone about another stuff up by Besalco......

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Answer from PT:

The short answers are:

a. Besalco were not able increase production back to 2,000 tonnes of final product per day after the plant shutdown in April.
b. Besalco had a shortage of trucks for ore transport in May
c. Besalco had some spare parts issues with recommissioning of one of the production lines
d. The two shipments in May were Santa Fe shipments - as Santa Fe has use of the port for one third of the month and thus share one third of the costs.
e. We are undertaking a review of using other operators, and Besalco, and doing some of the mine excavation and plant operations ourselves.
f. The funds raised will go towards achieving this in the short term.
g. We do not publish when ships are planned to leave so we don't put undue pressure on our shipping contractor to find ships in the region. When they are booked we will publish it.
h. Our cashflows are not dependent on shipments, as we have adequate debt facilities and the reality is we are planning a much larger expansion than just one crusher being replaced that was incorrectly sized by Besalco.

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...but I get the impression ady are already cashed up and these lost shipments don't really matter.

Otherwise, why would Phil say......

"Our cashflows are not dependent on shipments, as we have adequate debt facilities and the reality is we are planning a much larger expansion..."

... but I agree with PT, we have to do something about Besalco.