Ann: Updated Life of Mine Plan for Abujar Gold Mine, page-39

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Battersea

141 Posts.

64

07/10/23

22:41

Post #: 70228518
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Originally posted by BerserkWarrior: ↑

Problems....firstly the investment case has changed a long way from the DFS to the downside, I estimate by around 35-40%. That can't be changed now so anything has to relate to the current updated resource & mine plan. Secondly, and this relates to the current plan, around a quarter of the resource to achieve the new numbers is only inferred yet it's crucial to achieving the new targets so even this has to be proven up and that isn't in the bag. It's a case of damage control on the run and it seems even with this latest announcement that's the case. If they achieve these numbers then there's good upside potential from here but if they don't, the shorts will have a field day. This could all have been avoided if they took more time with the basics....proving up the resource with denser infilling which would have given scope for debt funding rather than continual equity raises & by taking more time with development in building sufficient ore stockpiles prior to commissioning the plant & ramping up production to nameplate. The shortcuts they've taken have come back on them every time. These decisions reflect poorly on Board oversight & senior management execution to date.

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Very thoughtful and intelligent, BW – it's certainly true that the market takes no prisoners these days.

If a company says its going to do something it's got to abide by that and if it doesn't it gets into trouble.

No room for error or missed targets

Everything that you and Speculator have said about failing to do the prep work has come home to haunt us.

That said, Wilcox isn't doing this because he can't think of anything else to do, so I'm pretty sure he will knock everything into shape and the market will respond accordingly.

TIE Price at posting: 31.0¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

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