RE:RE:Time to cut expenses
Hi James,
Thanks for your post. Further trying to see clearly into this, NML was planning on producing 3 MT's of iron ore from the domed processing plant in 2014 and 1 MT's of iron ore from the outside plant. That was when their guidance was to have the domed plant fully commissioned at the 3 million tonnes per year capacity at the beginning of 2014 from what I understand based on the presentation for the last AGM.
In the last interview on BNN, the CEO says that they will start production from the domed plant in the second quarter and that the plant will have reached a production rate of 3 million tonnes per year by the end of 2014. Based on that, it's clear that production from the domed plant won't be no where close to 3 million tonnes in 2014. As for the production from the outside plant, I guess it's reasonable to believe that they will achieve their 1 million tonnes production target. But then again, guidance from this year was to produce 2 million tonnes and they only have shipped 70 k tonnes by mid-september. Considering that they have produced 300k tonnes in 2012 and shipped nothing, it's hard to tell how well is the outside plant running at this time. Also, the 2 million tonnes for 2013 must have included some production from the domed plant, likely 1 million tonnes if they only plan to produde 1 million tonnes from the outside plant next year.
I surely agree with you that they should clarify their production guidance. Would be nice to know why they are so behind schedule also if I understand this correclty.
Cheers,
Ben