VERY disappointing BUT not the end.....I see Rockdoc has already beautifully outlined all the issues, in great precise detail, issues that i had problems with, so i'm just going to give my overall sentiment of the company at this point, with some references to items in that report. I completely 100% agree with Rockdoc's view on this unfortunately.
Let me start off by saying this, i was completely disappointed with the results & rate of progression from the company's operations with this latest report BUT not totally surprised. Given the cloudy past & plague prone problems with this mine, with its mixed history of dubious decision making and the revolving door of various mgmt figures for the last decade. There was a reason why they kept quiet for over three months without an inlking of any ongoings within the company, nor an update to be seen or even a peep from anyone. And there you have it. I will not get into the specifics with ALL technical issues the company is facing, as i don't want this post to be too long, but i will point out the biggest let downs for me.
The first was the ventillation & the fans. I fully expected them to be installed this late in the game. I won't go on a rant now to criticize anyone for that failure because i'm not physically on site and i don't know all the problems surrounding this issue. But i definitely expected better. Even though they will be eventually installed, it was nonetheless severely delayed and pushed back again. Secondly, i also expected ore production to be at 3000tpd by now and at 5000tpd by mid year at the very latest. But now according to the report, this is all delayed & pushed back as well. No biggy, as i was fully prepared for some possible techinical difficulties with this investment and was working within a frame of 3000tpd for the year. The 5000tpd if achieved would have been a bonus. Still a huge let down though, knowing this reality will now probably be pushed back well into 2023. There are more "issues" i had with this report, but will stop here.
Will not address the finanicial side, as everything seems to be in order on that front and as expected. The problem now lies with timelines & things being on schedule or in this case, pushed back. Because everything didn't go as "planned" and the difficulties encountered, whether coivd related, technicalities, logistical, engineering wise or operational challenges have delayed almost everything, it means much higher expenses lasting much longer. Therefore possible unexpected dilution much earlier. I had already anticipated significant dilution taking place later this year to finance the early stages of the open pit mine, but now that's probably up in the air with everything being pushed back. I figure the completion of the feasibility study will probably be pushed back as well. So as you can see, there's an obvious recurring pattern here, with three key phrases that keep repeating themselves throughout the whole report, being techinical difficulties, more delays & being pushed back. Of course with some sprinkle of Covid being mentioned here & there.
So the big question here, or the big elephant in the room, should an investor keep holding for better days ahead or sell? Tough call. The resource value is most definitely present, there's no doubt about that BUT so are the problems. The problems of convincing investors they can execute & transparency. So not an easy call to make. Something that was obvious very early on, was that this was never a short term investment, and certainly not one without its issues. But the fact remains that there are STILL significant risks involved with it which may present some future unexpected obstacles. So really a difficult one to call at this particular time. Why? Because after getting this very mediocre report from the company, i'm having a tough time figuring out if all this is truly the result of real, genuine problems with the developement & operation of this mine OR if this is all being purposely done to give the illusion of a problematic mine & a compromised asset to ultimately surpress the shares of Nevada for the benefit of someone or some group some time in the not to distant future. Like i said....a tough call.
Will let you know when i decide.....
GLTA