Firstly I wanted to comment that some of the posts coming through this board are very high quality. Well done to all involved.
Next, I wanted to comment on how such a large error could have been detected so late in the game. Small and large errors can be the same difficulty to detect. Generally it seems to me to be a smaller error with large consequences. I would wager that in the original design document it specifically states that a risk exists that the process may not work as design due to a high concentration of X. Speculatively it is not hard to imagine the issue being discussed and then the risk accepted.
As for the timing of the discovery. Generally when you discover bad news of that magnitude you certainly need to make sure you are right. Two months from niggling worry to documented problem is not long at all imo.
So where to from here? I too would like some though detail on the design work. While it is not my profession I have studied the topic for a year back at university....further more being a share holder makes me an owner. I have a right to be fully informed whether the news is good or bad. I would remind any CMR management it is not your decision what to tell us and what not to tell us.
Finally, if you do believe in the quality of the resource don't let the short term gloom fade you out. In the overall picture 6 month or even 12 month delays are not that bigger deal. It is part of the risk profile you accept when you buy into developers....that is why we get the bigger returns down here.
Anyway, best of luck to all and keep up the excellent quality of posts.
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
