RE:RE:RE:RE:OversoldYes all businesses are contending wih labour shortages. I think the key is that because development is so far behind at Kiena. They wont be able to get high grade resource fro Kiena A where the grade is higher & consistent.
Wesdome shutdown the Kiean mine in Q2 2013 due to intermitent mineralization and as gold grade dropped from 5-7 gpt to 2-4 gpt. It is likely that this is the same area and structures that Wesdome must mine until they ramp down to Kiena A Deep Zone. They are 9-12 months behind plan to ramp down to the high grade ore.
The S, S50 and VC Zones have a history of intermitent and grade variability compared to the historically stated reserve grade. Below is the final quarter of mining at Kiena in 2013:
If the same area is now going to be mined at similar grades using cost structures today... How bad do you think the financials will be for the mine in issolation? This is my concern....Is the 100 million ATM and 150 million loan enough to see the company through to completing the ramp? Originally the plan would have been to blend the high grade ore with the historical low grade ore.
The mine was originally shut down in 2013 due to low and intermitent grades. Ground stability issues existed same as today. These ground stability issues issues likely would have also increased costs due to slow mining rates and increased costs.
This is why I think Kiena and hence Wesdome is going to bleed cash at least 9-12 months. What is the risk of other start up issues that could increase costs and delay revenues from higher grade. At what point will WDO break under the financial burden? Is it worth holding the stock during this interim risky period?
I'd like to hear your perspectives as I'm still holding 2/3rds of my position.