Why The Pessimism ?, page-40

I picked the similarities with BLK from the very beginning in July 2017 when the share price was roaring up with blind confidence at 42 cents. The FS strip ratios and grades seemed like dead ringers for BLK's Matilda open pits. The grade shortfall sunk the ship but the ship was/is still vulnerable to potential problems arising from sub-optimal material movements, equipment availability and slippages, particulary in the early years.

https://hotcopper.com.au/threads/further-good-news.3532635/page-8?post_id=25925391#.XHFerxo_WhA

I am keeping watch as the high gold price has potential to help let the project off the hook but I wouldn't be buying yet. The cash balance at the end of the March quarter is going to be critical to the share price going forward IMO. If liquidity falls much below $10 million it becomes dangerously low. Most of the bank loans that finance these sort of mine developments will have some convanents written within the terms of the loan which require a certain level of liquidity to be maintained. A fall below that level would require the company to seek more funding or obtain a waiver to the liquidity condition under the loan agreement. I wouldn't be gambling on the company's performance this quarter, but I supppose each to their own. Good luck if you are on the punt. Esh