I sent GOR the below email with a few questions. Will be interesting to see what they say.
Referring to the announcement on the 24thof September – Gruyere Production Update:
- Why did the company not immediately release an announcement to the market when the ball mill motor bearing failed on restart? Instead it was released only after production restarted 7 days later on the afternoon of September 24th.
- How did the team come to the decision that a ball mill motor bearing failure that resulted in an unplanned 7 day shutdown of the only producing mine of the company and resulted in an approximate $200 addition to the AISC and quarterly production downgrade, was not market sensitive?
I havepreviously had no issues with the management team and I have done really wellon GOR but this late announcement was very disappointing personally. As a partowner, however small, I have a right to know if the mine is in a shutdown andthis announcement or lack of announcement gave me some big red warning signs.Every mine will go through some issues and that is understandable, but adecision to not inform the market is a choice made by the board and I believethe wrong one.
Referring to the latest announcementregarding renewable energy:
- What is the expected ROI on the $32-38 million?
I ask thisas a 5% decrease to the power supply unit costs seems low for that type ofinvestment. Yes, it will increase plant throughput and yes it will reducecarbon emissions which could potentially invite more ESG focused institutionsand superfunds. I understand there might be some tax benefits due to theamortisation over the ESA as well but financially 5% decrease in power supplyunit costs seems low for a $32-38 million investment.
Referring to the exploration updates orlack thereof:
- When can shareholders expect the next exploration update?
As Gold Fields is running the mine, GOR’sfocus I would hope would be to find another Gruyere so the lack of explorationupdates is worrying. I believe shareholders would want more regular updates.The last exploration update was on the 10/9/2020 excluding the quarterly reportand was 28 pages long. Surely there could have been multiple updates of lessinformation as and when the results came back?
As Gruyere production is quite steady, only real upside to GOR at the moment isthe cash increase, exploration success and increase in gold price, thereforeexploration news is welcome even if it may be negative news.
Referring to the sizeable cash in hand:
- Is the company worried that at this current low share price the company could be a takeover target itself?
- Any update on mergers or plans with the cash apart from dividends and the $250 million facility?
Sharing of information:
- Do I have your permission to post the answers on a stock forum so other GOR shareholders can see?
I look forward to your reply and thankyou for your time.
(20min delay)