I Read the announcement few times, just make sure I wasnt miss anything. So a temporary suspension of operations due to a small tear in the lining in tailings dam as small amount of liquid being released to the near by river.
Good sides: * Local authorities were notified and assessment was done * no environmental damage * no substantial contamination and believed there would not be any.
Bad sides: * It will affect production and sales during the current quarter.
Well what can I say Looks like we are missing the 8000oz target again this quarter, but the mine itself is not failing. (in fact it is quite a small issue base on the ann)
According to the ann, they will focus on underground development while fixing the issue. So the mine is not completed shut down. But it will stop the gold production as they need the tailings dam for this.
I agreed with Quicksilvasurfa, it is not normal practice to stop the gold production for what seems to be such a small problem? But it is up to the company policy to handle such matter. If contacting local authorities and wait for the assessment require shutting down the production, then the company just following their procedure. To me the company looks like have very high environmental awareness, and very strict call for dealing with such issues. (if you know the mining industry well, then you will understand what I am talking about.)
As there is no detail about the damage in the tailings dam, so I am not sure how much and how long it will cost to fix it. But if just a small tear as mentioned, then it shouldnt take long or cost much to fix it, plus a extra few days to the inspect for the rest of the dam.
As shareholder, I am disappointed about this. But its not a disaster. For the balance of environment and profit.I let the CEO to decide what is the best for the local community and company.
For the share price, have to wait until the more information release to the market.
MUN Price at posting:
23.2¢ Sentiment: Hold Disclosure: Held
