Share Price Torpedoed, page-5

It's a huge bugger. Problem is, almost everybody invested on a thesis based on what the development cost was supposed to be, what the reserve was and as we've seen most importantly what the reconciled grades should have been. None of this has come through. You now have a mill producing at around breakeven. This wasn't what shareholders signed up for, well not me anyway. Now they're telling you they want a fistful of dollars to go and find new ore bodies.....that's an explorer, not a producer with all the risk that goes along with it. The enterprise value isn't much more than an explorer now though. The RvR here was for a high cost producer exploiting a small reserve (the cake) which was your margin of safety with potential upside from district exploration (the cream & cherry on top). Now there's no cake & only the hope of exploration upside. An escalating gold price would be a savior here & of course exploration success but this company isn't the one that it was purported to be in ramp up. They had some bad luck with unforeseen problems with the pasty mill feed base & price escalation due to WA lockdowns but management should I think share blame here too....poorly reconciled mining grades have a nasty habit of crushing a mining business. They have to lock those grades in, spend more on delineation drilling if you have to, it's far cheaper than trying to cover shortfalls later.
Really feel for shareholders here. I was one & decided the lack of news coming to shareholders when we really needed it didn't stack up so I took a hit and sold the lot fully expecting the news drought had a basis which evidentially it did. I had the intention of buying back in if I was wrong but the investment thesis looks nothing like what it did only 6-9 months ago.
Hope it works out for you guys.