The gravel production can become "Non Profitable" if "No" Gravel is sold because it is based on Royalties, which is a payment to NAGs based on a per Tonne fee on Sales. There are no outlay/costs involved with Royalties, so it couldn't run at a Loss
The Contractors weren't selling Gravel though, they were selling Aggregate, used to make concrete and they were making Sales, just not enough, I think. The issue for NAGs then is 1) Loss of Potential Income and 2) The Heap Leach Pad isn't being cleared. Remember the Heap Leach Pad is the "Work Bench" which will be reuse for new gold production.
I think the Contractors were just too slow, not able to get their act together & get things happening. The alternatives are 1) get new contractors or 2) for NAGs to do it themselves - process & sell direct, taking all the profits, not just Royalties.
It's my guess they could be looking at the latter (though I don't know for sure) and I say that simply because they now have a new CEO as well as the existing Site Manager, so they may feel it is time to do it themselves & get it moving. I've met Darren, the Site Manager and I'm pretty sure his attitude would be "get 'em out & let me at it. I'll get it happening". Management may have decided to let him at it instead of watching non action from The Contractor, concluding it is easier just to do it themselves, .... or they may have a new Contractor lined up.
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