Well the Quarterly came in more or less around most expectations with Far West holding its own and making a little headway while supporting two operations . Depending on commodity prices, production costs ,when Far West starts its eventual decline in production and the start up of production at Liontown will dictate how things go at Thalanga, but at the moment its
keeping things afloat and should continue to do so barring a serios drop-off of commodity prices from here, thats simply an unknown.
That brings us to Hillgrove which has led me to moving on untill there is more certainty around that.
Reading between the lines from what the chairman said a while back and Mel's comments, it appears that somewhere between increasing costs, labor shortages and trying to get things right ( likely aimed at a ANTIMONY offtake) they haven't been able to get things where they are comfortable with hence a strategic review. Also draining the tailings pond is taking its time it seems.
A strategic review can only lead to three things really.
1: Putting the whole project on hold for an unknown amount of time while continuing the drilling program leading potentially a larger project. Would likely need a partner as we're talking lots of money.
2: Proceeding as planned with underground while continuing drilling leading to expansion
options but just taking more time to try and resolve the issues and get underground operations underway.
3: Sell the project if they can get a reasonable price.
At some point they have to make a decision around keeping the current staff employed or letting them go. I suspect option 2 as the most likely outcome but far from certain.
Hillgrove has certainly proved to be a headache but does contain some great resources.
Anyway happy to have my cash parked elsewhere untill the picture becomes a lot clearer..
Cheers Whisky
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