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12.5¢ consolidated tin mines limited

ASX advised "The Mt Garnet Mine was placed in a temporary...

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js2010copper

1,527 Posts.

46

22/07/16

19:55

Post #: 18341410
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Originally posted by eastwest101 ↑

You know what I find interesting about that? The ASX posed a series of questions to the CSD company secretary Ze Huang (Martin) Cai starting off with:

ASX: "We refer to your letter dated 18 July 2016 and respond to your questions as follows:
1. Does the Entity consider the Shutdown to be information that a reasonable person
would expect to have a material effect on the price or value of its securities?"

R. DeLacey: "No"

Note whom answered this ASX enquiry, followed by the next question:

ASX: "If the answer to question 1 is "no", please advise the basis for that view."

R. DeLacey: "The Mt Garnet Mine was placed in a temporary maintenance shut down (Shutdown)
on 20 May 2016 to allow for scheduled maintenance. This is standard practice that
occurs approximately every three months and is a normal part of mining.
At the same time, the $20 million loan facility (Funding) announced on 29 February
2016, which was to be available no later than 19 April 2016, was expected to be
available within days. In anticipation of receipt of the Funding, a decision was made
to extend the temporary shutdown until such time as the Funding was received and
the Company caught up on overdue maintenance. This would ensure all
maintenance was fully complete before the Funding was released which would
trigger the re-start of the Mt Garnet Mine operations. The Shutdown was extended by
a couple of days at a time as delays on receipt of Funding was delayed each day. At
the time it was not considered necessary to advise the market of this extension as the
expectation was that operations would restart within days of the Funding being
received.

The board continued to monitor the delays to Funding and remained confident that
receipt of Funding to the Company's bank account would occur at any time. However,
the board became concerned about the delays relayed each day and on
27 June 2016 requested a trading halt. This led to the announcement on 6 July 2016 in
which it was considered necessary to inform the market that the Mt Garnet Mine was
on a maintenance shutdown and it was also prudent to cease activities on
exploration projects until the Funding was received."

Or - to summarize that answer - We shut the plant down for scheduled maintenence on the 20th May and did nothing until the 6th July. I expect the next question from the ASX is what is a normal maintenence shutdown period for the Mt Garnet plant? The truthful answer would be - the entire wet season if its too wet or we have no ore, or a matter of days or up to a week or two for a planned maintenence shut down - typical industry standard - NOT 60+ days, thats isn't a planned shutdown....

Thats either massive incompetence or failing to keep the market informed. Take your pick.

Expand

ASX advised
"The Mt Garnet Mine was placed in a temporary maintenance shut down (Shutdown)
on 20 May 2016 to allow for scheduled maintenance."

I'd really like to know what was the last date they put dirt through the mill making concentrate - that's the money making end of the business, how much is sitting and waiting to be shipped?

The 20th, hope it goes past the keeper!

CSD Price at posting: 2.5¢ Sentiment: None Disclosure: Held
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