I am new to mining stocks so don't know the ins and outs of the some of the technical jargon used, but applying reasonable judgment and comprehension what I do understand very clearly from this release is twofold:
a) on the operating days during the last 3 months, the mill processed tonneage at an average of 98% of their expectations (design capacity), and they are stating they remain confident they will exceed expectations going forward.
Conclusion: Sounds good. How many companies operate at such output in any sector, and say they expect it to get better? Yes, mining is affected by weather; as are, inter alia, crops and construction when cyclones or floods occur. If bad weather is not a tolerable swing factor, buy a tech stock. Apple and Facebook seem to have sold off nicely over the last 6 months, and I bet some of their management wish they could dig a hole in the ground to find copper.
b) a key focus of the company is efficiency with regard to cost management and minimising working capital requirements.
Conclusion: No update on runrate, but their objective could not be more clearly stated, so I am pleased to read it. I look forward to the next update / quarterly, on this topic.
BOTTOM LINE: the stock has been adversely hit for a multitude of reasons, and the above are not reasonable grounds for dumping this stock, especially at current levels. If anything, buy more. If the cynical mind is cotinuously worried about the flow of information from management, buy a stock in a different sector with the same growth potential, and better IR, and be sure to let us know your findings!
DML Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
