"Mind you MACA never had time to plan for the last wet season , they have had 7 months to prepare for the next one and have more machinery on the ground.
If they do prepare for the next wet season (like they should) it may reduce cash flow between now and the wet due to stockpiling ore and development costs with roading and drainage but the payback from that preparation (guessing $15M in costs and main cost mining for stockpiling ) would be measured in months .
(Just an observation from an investor with no inside knowledge so could be entirely wrong)"
Most certainly agree. The trouble is though, MACA will be under pressure to move as much dirt as they can whilst 'the sun shines'. This typically leads to lake of preparation for the oncoming wet season as they are too busy trying to keep up with the clients demand.... and demanding they usually are. Remembering that wet season prep also costs money and time - although it can be made up later in the season, typically it's not a cost that companies enjoy investing in. Especially small caps.
I'd expect it will take a season or 2 for MACA to get on top of things and come up with a structured wet season prep plan, obviously it is in their (and our) best interest to do so.
Given the healthy remunerations that are being handed to the BDR camp, I'd expect that this ship needs to turn around rather smartly. Lets see if it does
Nod
BDR Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
