The lack of production in the quarter, although disappointing, can be directly attributed to the GPP teething problems and the lack of access to underground workings. The GPP is now working to specs and underground access has been regained.
Infrastructure upgrades have been comprehensive and far-sighted and as NG observes "...it?s impossible to operate a successful mining operation ?half-cocked? in Australia". Overall the report is very positive and indicates that MCO is very close to production now that the major problems have been resolved and the hi-speed winder is about to become operational.
My main criticism to date, although seen as petty by some, has been the company's poor communication with the market. I see this report as substantially addressing this issue as it objectively addresses the issues facing MCO without 'gilding the lily'. Future honest reports and regular updates of this nature will enhance the company's standing in shareholders' eyes and demonstrate to potential investors that MCO is a company with a long-term golden future.
MCO Price at posting:
30.5¢ Sentiment: LT Buy Disclosure: Held
