TSXV:OSU.H - Post by User
Comment by
CalifDreamingon Jul 21, 2008 4:11pm
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Post# 15314090
RE: Fear...
RE: Fear...What a load of codswallop. Old management played the cards they were dealt the best they could and few others (including current management) would have done much better, no matter what wishful thinking one may have.
And those who expect things to change after this merger are self delusional. Varvinskoye isn't a bit different with new management. The metallurgy is more difficult than expected. As such, the mill isn't performing as expected (complicated by the typical start up issues). Previous management bore the brunt of the problems and took steps to address them. If you substituted new management in their place, what would have changed? Not much. The problems will take time to resolve (if they can be fixed at all), no matter who is running the show. Current guidance is only 80% of design rate by year end, which is hardly encouraging from my perspective. Over a year in operation and they can't get to full rates? Yikes. I suspect "new" management hasn't come clean about all the problems either.
And the "assets" the new company has aren't much. Who in their right mind "invests" in Kyrgyzstan? That place makes the DRC look like a dream destination. I think EPM investors made a deal with the devil to merge into Orsu and I won't touch it.