Tony, the way this lot have been running this shambles I'm surprised anyone would even pay THAT much for it.
They can't turn an overall profit on the gold they ARE producing. They can't do the most elementary diligence and research on the "fantastic" tenements at laverton causing them to have to walk away from Apollo costing millions.
They consider a brilliant acquisition is a clapped out logistical nightmare with no working milling facilities that comes at an obscene price to purchase with loads of added baggage like a "sitting tenant called Stone Resources", historical royalty payments,disputed land ownership and repairing someone elses mill, so they can share its usage for an unworkable limited amount of days a year,and in the meanwhile have stood around for years down at Coolgardie scratching their gonads wondering how to reduce expenses, until a new recruit turns up and suggests a different approach to doing things which will save millions year on year, while he no doubt wonders how the hell such a simple solution which he says was certainly "not rocket science" could be overlooked for so long by these mining gurus.
With the costs they will be incurring this quarter it is odds on that they have no chance whatsoever of turning a profit either this quarter or indeed the foreseeable future,and are now more or less reduced to an exploration punt Company.
The figures have shown they were on the brink of bankruptcy pre Shandongs millions and at the current cash burn they will be back there again in 18months barring some substantial discoveries so why would anyone pay 57million or more for a Company that produces gold at an overall loss while prices are close to all time highs leaving them nothing else other than a punt on what they may or may not dig up?
It would surely have to be someone with a bottomless pit full of money who would be satisfied to get their hands on gold at cost,or even a slight loss rather than buying on the open market and tilting the balance globally wouldn't it?
Can't imagine who that would be! LOL.
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