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11/05/21
22:54
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Originally posted by ozblue:
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IMHO the Life Of Mine Plan (LOMP) is very deliberately understated. I think everyone was expecting a bit better and a bigger share price move, but the market gives what it gives, nothing more and nothing less. There is a beauty to such a conservative LOMP, being it will be easily beaten on just about every metric over time by just returning the mine and plant to the production throughput of Randgold/Anglo. Think of the possible future announcements, like .... Crushing/grinding circuit working 15% above planned rate. New drilling increases resources and reserves above LOMP. Higher grade to processing plant lowers AISC.. Gold production exceeds LOMP by xxx% (OK I cheekily put in 3 x's) Maiden profit exceeds LOMP by xxx%!! A conservative LOMP allows management to continue looking good, continue to beat market expectations and allows a continuity of positive announcements for a long time to come. So far the BOD/management are playing a flawless game and I don't expect anything less with the lithium partner/demerger. A curiosity about the market is how good news seems to beget good news and bad news begets bad news continuously for a stock. We have been getting good news for over 6 months now, announcement after announcement, there is no reason to think this will stop. The continued good news makes more market participants pay attention over time, dragging in more traders/investors and pushing up the SP.
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I thought the same. I'm especially surprised by the 4Mt throughput used as it seems to me the mill can do 4.5 at least as it stands now, let alone potential upgrades and additions. Is this a case of built in under-promise / over-deliver?