In hindsight (and everyone is an expert in hindsight) I think there was numerous warning signs relating to the current SP action. We saw the strip ratio jump 35% - that was evident in April when they disclosed the pit optimisation and ore reserve - this is a material hit to a low grade mine. The processing costs looked low for a 9 micron grind size even if Archie reckoned Aachen was going to cut processing costs. We saw the instos selling down in the lead up to the DFS and we saw continual delays in the Aachen test work - never a good sign. To be honest I thought the size of the project in the current price environment would have outweighed the cost creep and it would have to sell - which I still think is the case.
A number of parties could have leaked info - the good folks at the institutions no doubt have steak lunches with the consultants that work at the likes of lycopodium. I don’t think it’s fair to blame mgmt there.
CDV Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
