The higher grades were pleasing. I think earlier this year they announced some higher grade ore they found.
I noticed they CGX did not mention anything about what they will recover from the insurance company - in fact no mention of this issue at all in the quarterly. I wonder if there is something that would enable the insurance company from paying out, such as CGX running its plant well above its rated level for an extended period. If CGX ran the sag mill above its specifications then perhaps the company may not be liable if there is downtime due to faults with the plant. This is just my negative speculation which I am prone to when feeling a company's share price has been underperforming.
Everything should be roses in the April 2012 quarterly report, but that is a long time in these markets. We need firm plans to up plant capacity to 10 mtpa to get some movement in the share price. CGX directors do not compare well with the PRU mob. I obviously backed the wrong horse. The one advantage is that I think the 'pines are a much safer investment bet than the Ivory Coast where PRU has its next project.
loki
CGX Price at posting:
$2.35 Sentiment: Hold Disclosure: Held
