RE:RE:RE:RE:RE:Rye Patch Gold Increases Haulage Capacity at Florida CanyonThey didn't have a lot of spare cash to buy those extra spare trucks. The sale of the royalty closed on June 1. Those trucks came with the purchase of Florida Canyon. In the ideal world, yeah it would be great to have spares, but in the real world there isn't spare cash.
If they were to raise cash selling shares earlier in the year, certain people would be yelling why the h ell are they diluting shareholders to buy spare trucks they don't need?
They were placing extra tonnes of ore from Jan to Mar before leaching was started mid April, so it doesn't sound like they were in big need of spare trucks.
1 month of downtime out of the first 2.5 months of leaching isn't going to kill them. The 2 trucks probably didn't have much of an impact on production anyway. The big impact was the 2 circuits being down. What would you have said if they spent their cash on spare trucks and didn't have the spare cash to fix the cracked wash vessel??
Re-read the news release and see what they said caused the production drop.
"June gold production was above plan but below expectations as a result of the acid wash circuit being off-line most of June to replace a cracked wash vessel. The new vessel has arrived and is being installed. Work on the regeneration kiln was also completed in June. The result of these two items being off-line was a decrease in efficiency of the carbon plant to attract the gold thus decreasing gold production. Both circuits will be back on-line in July."
They didn't even say the 2 trucks had any effect on production. You are harping on the wrong thing causing the production drop. The 2 trucks were down in June. Had those 2 trucks placed ore in June, it would have absolutely no effect on June production because it would take 45 days for that ore to leach! So clearly those 2 trucks down in June had
absolutely nothing to do with production down in June!
(D@mn winning that lottery is such a hassle. Wish i handn't won that lottery.)
Fullplate wrote: TS. I was referring to the July 10 news release stating that 2 haul trucks were out of service for the month of June. Mine production was well below the projections for the month. The additional trucks would have been useful. I commented at that time that this was either the fault of the mine manager if he did not request adequate equipment or of top management for not providing it. There should be sufficient numbers of trucks to allow for breakdowns.