Hi John, I only follow from the periphery but my feeling is the market is concerned about the lack of near term growth in production and perception of a rising cost profile. The market may be factoring in the risk that the Mcphillamy’s project never gets off the ground.
Recent comments from the company indicated Mcphillamys could still be 3 years away from production, however there does seem to be considerable community opposition to the mine that I think means there is some doubt the project will proceed at all. NSW is notoriously slow with approvals etc and the western part of the state is grappling with an extreme water shortage, which was a key political issue in the recent state election.
Interestingly the area is home to decent sized gold mines like Cadia and Cowal so I would have thought would be mining friendly. The tailings incident at Cadia last year probably didn’t help the feeling of the community about environmental issues.
The Regis tilt at CMM last year also suggests the company might be concerned about Mcphillamys.
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