Why no announcement - more problems?

The announcement dated Dec. 12, 2014 “WMRC Project Update – Ramp up” informed the shareholders of manufacturing faults in some mechanical equipment. The announcements also said that it was expected that the items “should be rectified and back in service in approximately seven weeks’ time. That would be February 3, 2015 – say Friday, February 6.

With a consecutive sequential cycle taking 21 days – the first batch should have been completed by February 27 with the others following
Batch 2 – March 06
Batch 3 – March 13
Batch 4 – March 20
Batch 5 – March 27

Even a delay of the repairs by one or two weeks, the plant should have seen a full cycle with all three vessels – that is if no further problems were encountered.

The Half-Year Report dated Feb. 27, 2015 only says: “At the date of this report Biological Ramp-up is still in progress and is forecast to be completed within a few months. Once completed ………”. It is interesting that there was no clear statement that the repairs were completed and the Ramp-up running with all three vessels.

The announcement dated Dec. 16, 2014 also mentions “We continue to examine our options for compensation as a result of the delays to Ramp-up caused by these faults“. I guess that this also refers to the faulty tanks. It is interesting that the Half-Year Report makes no reference to this although the delays put the company and the shareholders $68 million contributed equity at substantial risk.

I think shareholders deserve to be kept informed.