GC. That thought in your mind. The tenements or A1. What about the sale of Narnoo
It has been notable that the directors have done nothing to support the SP since JW left; either by supplying regular market updates or by achieving profitable production.
This might in part be due to confusion after JW left, but production was below par prior to his departure and there might have been confusion earlier.
It might be due to incompetence in general, or bad ground conditions. The plant is processing ore, we are told successfully and above nameplate capacity with 95% recovery. Good job Bill Hobba I assume.
Grade is less than 50% of expectation. We have not been told why. Is the ore being diluted by mining methods (inappropriate plant), or by the need to blend talc, clay and a bit of grit to make it processable, or is it just not there... smoke and mirrors I think BWJ used the term way back. A mix of all three maybe. Is gold still left in Beta?
The directors have not told us. Why? Are they risking the wrath of ASIC for a reason. Time may give us some pointers.
They predicted 8000 oz Dec production. Indicated a little less to ASIC mid Nov and produced around 4000 oz. So is the latest announcement an attempt to get off the hook with ASIC... We relied upon JW's figures and this explains why we missed our targets. The supergene would have given our projected production, but we did not mine it as per plan.
Now we cant find the old data, so we cant give you accurate data.... Not good for SP, but what have the directors done since August that has been good for the SP. Worked hard to rescue the situation and are still working hard.
The way out. Either mine gold and get the current liabilities down or do a CR and dilute existing holders. Credit to management, they seem to be trying to avoid a CR.
So the tenements are valuable, but the JORC has been rubbished. To recertify the JORC by redrilling is too expensive, so drill to support mining of Alpha, Beta and any local ore. Then to support mining of Northern tenements. So SP depends on future production (and CF)
Maybe reestablish the JORC by finding the old calculations and doing a little infill drilling for confidence sometime in the future.
Could I volunteer to recover data from old harddisks? That notebook that died without a usable backup.
AAM Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
