If I was a merchant banker in control of a gold mining company of a market cap of what - $4 million, that was in production (or so close) I'd sure be tempted to try and merge in some way with a cashed up outfit that had no production, but that needed to get runs on the board.
I'd hope that the better scale would be put the outfit about the media-notice-ability horizen.
Every new plant has problems - and I have seen over time announcements (or discussion in reports) as to plant production and mining personnel - a plant manager (maybe five months), metalurgist - maybe three months) and a miner whose name is escapes me has been with the company for many years - and the geologist MD John Cahill. So despite there not being enough production, they seem experienced.
Therefore, I guess, if there is a shortcoming that it is at the more senior management level - and has been reflected by accounting errors, strategic decision making, overall co-ordination of expenditure, budgeting, resource estimation, and exhibited in continuously poor and/or unclear communications.
All easily fixed - if its not too late.
GBM Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
