RE:Well......that was fun, eh?Lots of bad press here:
a) Reduction in throughput whilst starting up CL2
b) Forecast grade reduction for Q3 due to "mine sequencing"... should be restated as "we are afraid to put our higher grade ore through the mill because we are experiencing low recoveries"
c) The plant had several stoppages and that is affecting recoveries & throughput
d) The lack of both throughput & and recoveries combined with a dropping POG... we will see a reduction in Cash Flow... and risk being offside on banking covenents.... Read: the company will be in default due to breach of banking covenents
e) Restricted cash was expected to be 25 Million... they only got 15 million released
f) Need to continue to modify the refining processes because they just aren't getting the expected plant stability and recovery rates. Additional CAPEX req'd 8 Million + 2 Million
g) POG dropping 1.3 Million dolare delta for every 10,000 ounces produced.
~ not much to celebrate here. They sounded desperate with respect to Cash Flow woes... Good property.... but operational problems continue to manifest. I'd be tempted to buy knowing they will eventually solve the production issues ... but not till October.
But when someone says we are going to be in violation of banking covenenents... I get concerned.