That was the argument the SLR board used with Sugar Zone and that ended up costing us hundreds of millions. BGL will cost $2 billion in capital before a long process to turn the mine around given hedges will hold the company back until 2028.
Given our managements inability to turn around Sugar Zone and their reluctance to restart it I don't trust them to improve anything.
Production at Mt Monger has slipped from over 120,000 ounces to less than 100,000 ounces. Cock Eyed Bob and Maxwell are yet to be reopened despite the high gold price.
Production at Deflector has also slipped from 130,000 to around 100,000 ounces in the last year due to a lack of drilling and forward planning.
KOTH is slightly behind forecast this year so the verdict is still out there but I do like the plans for a bigger mill.
The Board and Management need to prove their credentials before blowing up any more shareholder capital, especially when the share price is so low.
They should reopen Cock-eyed Bob and drill more at Deflector before buying other underground mines.
GLTA/IMHO
VAU Price at posting:
41.3¢ Sentiment: Hold Disclosure: Held
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