RE: RE: Late Resource CountHi Folks;
Ok. so now it's officially delayed...and the reasoning MDA needs to do further metallurgical testing...
Given the recent events this appears to be strike 2 in terms of lame PR's
and since I'm feeling pretty frustrated right now here's the synical spin on this delay as well.
MDA has been working on this report for 7 months since O.K. announced this independant 43-101.
So are we to believe only in the last few weeks right before the report is due they say they
want to do additional met-testing...yeah sure Gary!
I say this because in an O.K. PR from less than a month ago they say they are still planning to
release this report in Nov. Hmmm I highly doubt MDA sprung this on O.K. in the last few weeks.
At any rate the met-testing O.K. did previously produced a 90% plus recovery rate so what
do you think doing another test to further improve recovery rates will give us above where we are now...
maybe a few % points more, so at most on on 200MM oz maybe 4 or 5 MM more oz.
Is this really worthy of a delay?
In some prior posts with calls in to O.K. mgmt they were thinking of a delay because of the
market conditions...yet the PR says otherwise. If Gary is delaying this because of market conditions
why can't he just say so and during the delay say MDA will perform further met-testing because they may
be able to improve on the recovery rate...This would have been a simple and honest release
with some positives instead of coming across as weasal words.
So for this delay the question you ask yourself, is a delay more supportive for the SP.
I doubt it because who's to say the market will be better in Jan. what if it's worse.
While I agree there may be limited POP in the SP given the current conditions I do know
that having 150MM oz would be much more supportive for the SP no matter if the market is good or bad
What if the market tanks again do we head down to .25 cents and then
does O.K mgmt come out and say oops we have to reprice the options again...
This delay also seems like more of an emotional greed decision vs a sound management decision...
"We don't want to release good news because the SP might not go up enough!" Give me a break.
I also wonder how many folks added to positions over the last 3 weeks or so expecting this release that had
promised in about the last 6 or so PR's would in fact get released. More short term pain coming in my view!
The point is you CAN'T predict the market and from my perspective GOOD news is always GOOD news
and won't ever hurt you so get the good news out as fast as you can, the market will reflect it eventually and
provide you with extra support until then.
I know some have voiced their support of the delay this is just me thinking through the opposing view
A BIG THANKS to PAR for sharing his call in to Gary
and to Bool and Aim and the rest of the gang for their perspective!!!!!!
cheers,
b-low-s-high