These guys are so FOS...
LOLOL... how long have they sat on the assays, geological interpretation, reconciliation based off 'non-grade-control' modelling from last year and considered if hopefully the results wouldn't mean a drop in grade/metal production and thus a CR???
Seriously, assays were already back from half the grade control drilling in the June'22 Qtr (from June Qtrly below).
Same shite as the new MRE interp 'released' Apr'21 but based on a results and interp done handed to the company early 2021. Orebody broken up into thinner, harder to mine veins instead of massive mineralisaion, causing increased dilution and lower over-all tonnage and grade in the mine plan (released July 2022 ... ffs). So, same-same but not different! Basically, they get into the orebody and it's more patchy and discontinuous than expected from 2021 MRE, but well expected from grade control drilling results they held off releasing just in case things unexpectedly turned out better.... but they didn;t, tuned out just how any grade control geo woiuld have known as the results came in and they joined the dots and compared to the MRE model
Then holders are asked to believe the chunky range of CY2023 C1 cash costs will come down from US$0.80c (Oh, it's a range, yeah right) to 60c in 'real terms' meaning future costs will report higher, when 'steady state' is reached (which is another way of saying when/if we reach the mine plan numbers). Still interested to see if they can keep the plant built for 1.2Mtpa running at 1.3Mtpa all year, every year or only for short periods?
Question holders want to know, is this downgrade now priced in like last year (ie pinch nose, double down but this time sell out when out get close to breakeven) or if 'steady state' never eventuates and they keep burning cash until debt repayments become unsustainable is all your investment at risk? I don;t know, it's a gamble, but the risks of losing it all has ratcheted up since last years CR which was more about setting up insiders to average down ultra cheap to get out of jail after the LOM downgrade confession rather than actual solvency risk. Ramp up risks, geological interp risks, mine performance risks are all part of playing the mine developer rollercoaster. Management misleading communications and insider price action isn't...
GLTAH
(20min delay)