@dooza99 - MDI won’t cop a fine for this. It’s a bit tough that ASX even pulled them up for it, but according to the ASX listing rules, MDI did over step the mark.
MDI have now fully complied by retracting the media statement.
The issue is that MDI should have made a formal announcement about production targets, and as part of that announcement, they should describe how they came to calculate those targets in accordance with the JORC code.
They will do that when they release their Feasibility Study, which will include all their production assumptions.
So in theory, you shouldn’t take this information and use it to make an investment decision. After all, the rules exist to protect investors from unscrupulous management teams. But if you’d been following MDI you’d know the management team are hardly unscrupulous, and actually err on the side of being conservative, especially when compared to the B/S that some other explorers come out with.
And if you did a bunch of research and came to your own conclusions based on the results to date, the existing inferred and indicated JORC resources, and the historic Sandstone ounces, then you might decide that these production targets are quite reasonable, and you might conclude that MDI at $0.017 is a great buying opportunity.
This isn’t financial advice, just a recommendation to do your own homework.
DYOR and GLTAH
