What I am hearing is they simply cut corners and removed key parts of the plant in the build to "save money" and now has cost. Key parts taken out have been put back and they have proper experience mineral sands engineers who have fixed the issues.Remember no one at RDG or Mineral Resources has any mineral sands experience before they brought Australian Garnet
Dont count you chickens too early. At 120k ton capacity and the fact they wont even say what they have been producing ...guess ...its produced less than 50% That doesnt matter ..what matters is how fast and efficiently they can get up to name plate of 120k ...
They need to keep marketing the company and explaining more about the garnet market so all share holders can get a basic understanding of an EBITDA margin per ton that should be sustainable ...ie $100bucks per ton at 100k tons is $10million pa.
this is the basic information still required in some format plus how they intend to sell over seas ,key markets and how they are going to get bagged product to customers efficiently and cost effectively
This stock should be trading at 4 to 5 cents now ..with 8 cent target next 12 months if they can prove up what they are doing
RDG Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
