Well I refused to be tempted to buy in the low 20s because a) I got burnt in the low 60s and b) because the issue here seems to be to management credibility (zero) and extraction.
As I see it they me that thay got a mine which had been passed on because it wasn't economic. They've got resource and so far a failed business plan to get the gold out.
It also seems they have a pretty high burn rate for cash and my shares have been diluted to smitherines so the question is jump at 12c or see if they can recover anything from this mess.
IMO there's no upside in jumping and now very little downside in staying. But I can understand T'bones logic.
Really it has been less than 12 months since the whole thing unwound and I guess it will take time and money to fix the problems (maybe).
Be interested if there are any posters with some knowledge of the operations who could make a guess about whether the fix (blending rock) is possible/feasible.
And wouldn't it be nice if they provided an achievable forecast for production? It's not like anyone believes 100k oz or the share price is tied to the likelihood of that happening - just makes management look incompetent, delusional or that other d-word T'bone used.
NGX Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
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