Ex holder here looking to get back in however I have a question...

Ex holder here looking to get back in however I have a question and opinion for the masses to critique.

They state that due to the December rains and now recent rains in February that the production this quarter will drop from 27000 ounces to 15000 ounces (a 44.5% drop) due to this interruption at Barrack. It then goes on to state that the interruption was 18 days. Now I understand there is ramp up times and so forth when processing to get things back up to full capacity however doesn't this seem like an extraordinary drop considering the period that there has been interruptions. I understand the flow on effect from December however really? 45%? Seems on the high side to me.


The company took longer than at least 1 other company to provide an update (almost a week after A1 minerals did in the Laverton region) after the rains and the share price has dropped in the same region as AAM (and AAM now has substantial other issues with the possability the reserves were never properly tested).

I thought and still beleive with the current projections that this stock is undervalued substantially however with more bad news slowly being filtered I can see why there was a steady decline prior to the second weather issues in February. I alswo agree the costs are factored in prior to the positives so the next FY report will proved a clearer picture of the company going forward.

If it gets to 6 cents I may reconsider getting back in if there seems to be light at the end of the tunnel.

Please tell me if I have this all wrong.

DYOR.