poison pill

The last paragraph mentions oversize ore material being encountered in April and May
Had they expected this oversized material if not it makes me weary of the accuracy of their reserves in the strandlines for the grain size of the material they are mining
It could have just as easily been slimes (very small grain size ie clay) that they encountered and causes havoc as which caused the close down of BHPs Beenup plant.

THe mention of measures neede to overcome the oversize material means to me they may have to put in a rotating trommel to remove the oversize gangue that would be another expense unless they can merely change the screens on the primary treatment plant and hope the spirals still can handle the oversize grains.

As for the actual announcement it seems to merely appease shareholders as a full trainload means nothing to me unless they quantify the amount in the train and in what time frame with the amount mined against the benchmark nameplate capacity for the plant.
I am guessing the announcenent has been made so they can do a rights issue without the sp falling more as they have run out of cash.
The real measure of how well the plant was doing would be the contractors who have built the plant handing it over to the company which has not happened yet indicating their are still production problems.


and what does the phrase " These production records are in prospect" last paragraph of the announcement mean?

I have only continued to buy at these levels as I cant see much downside as the sp is laughable aslos it is rumoured zircon is in short supply in China