Jantimot,
"So why have they run out of money? Again?"
That is clearly the $64 (million?) question.
My suspicion is that everything has not gone according to plan, but the board never did release the plan, so we simply don't know. All the short/medium term promises/statements from management that keep not being met, obviously mean problems but CDU never acknowledge any problems. Why? Is there some type of mining macho-ness that credes never admit a mistake?
Why is it so difficult for management of this company in particular to not reveal the full plan, with costings and timetables?
The only conclusion I can draw is that perhaps they are unsure themselves. The DSO sales and ore-sorter drama over the last year or so, would tend to add credence to this theory.
The money needed to finish, is perhaps an unknown. They have only recently called for tenders for the electricals and are evaluating them.
"Electrical Installation not yet awarded, tenders currently being evaluated. Electrical cable supply yet to be awarded Cable support tender yet to be awarded E-House (ie Switchrooms) currently being fabricated in China. Expected mid-December 2014."
If the prices of some of/all of these are deemed too high, are they going to employ their own electricians to do the job and possibly put the commissioning date further back, just like with the concreting/foundations?
The SP is where it is because the market now smells the cap raise and lack of clear information from the company continues to fuel the downward spiral.
Needing money to complete the plant, but not doing it quickly just hurts existing share holders. It's like the company is a rabbit in the middle of the road with headlights coming straight for it, mesmerised and hoping for a miracle. What could the miracle be?
One outside possibility, is the high grade primary ore they sent to glencore was the really high grade stuff they dug up unexpectedly and were thinking of selling as DSO. Let's call it 15% grade. If so then it is probably worth $10m, so why not announce the grade sent to Glencore if that was the case? Possibly because even just $10m is not enough.
At some point soon, this will be a bargain, but with even loyal share holders from many years, now starting to sell according to some recent posts, the company isn't doing anyone any favors by doing nothing, and saying nothing.
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