underperformer, page-8

Well it’s a screaming buy then...

However, the overall grade is far too low to be an underground operation – and the thicknesses are pretty thin for an open cut operation. I have just had a look, and to be honest I haven’t looked at this company for a while. But from memory, over 2.9Moz are in the Inferred JORC category. Secondly, from the only suitable diagrams available, it appears that the stripping ratio will very quickly be huge. Meaning... only the top portion of the various ore bodies could possibly be mined economically before the stripping ratio gets out of control and kills the viability. The chance is that theses surfical tonnages may not be sufficient yet to pay for a mill to even consider a standalone operation. I suppose they could still investigate the toll-treatment option.

I say only the above – and not much else – because the amount for technical information is pretty limited. There are very few diagrams – orebody plans (long-sections) demonstrating continuity, thickness and grade. What they do have in the annual report are block model calculation’s x-sections, but they are pretty useless without additional information.

You say that Stockanalysis suggest this is the best buy – but on what basis? Published ounces? EV? Both are useless measures on their own. I am not implying that this is actually that bad company of course. What I am saying is that there is not enough of the right kind of information to make an informed judgement one way or the other. Not even for Stockanalysis!!!! Although it maybe they have gone for a site visit and have additional information or views that are not available for the rest of the market. There are no presentations, or proper orebody diagrams. Without that kind of information – even with the best intentions (including people on this thread) are making unsubstantiated suppositions about this company’s future.