GREY:MWSWF - Post by User
Comment by
CQCmasteron Jan 22, 2015 11:34am
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Post# 23351371
RE:Where does it say they are reducing output ?
RE:Where does it say they are reducing output ? aweigh wrote: The release says they are reducing employees and reviewing corporate structure, ie. trimming a little fat. Standard practise in any industry where making money is the main goal.
From my understanding, this whole thing has been orchestrated by Trafigura and Galena. The reason why MWE went down in earnings in 2014 was because of the poor performance of Dikulushi. It's pretty much dried up. It's time to move to Kapulo and make money. Now I'm no expert when it comes to mining, but wouldn't it make sense to transfer those miners from Dikulushi to Kapulo? Why have a surplus in workforce if you don't need to? Why go full production at these Cu prices and not just wait a little until it stabilizes? These are the questions we need to ask ourselves... Just wait for USD to drop again, and clear the surplus of Cu that exists right now in the market. China's real estate plays a big role in this one.