Blinders still on for most posters And ye guys still think their fortunes have turned around? Like I said before, how could they be so wrong in their projections. Carlos and Agnes, should be gone too. Here are just a few major problems listed from the annual information form. No good in it at all.
During fiscal year 2011, the Company was unable to adequately mine the higher-grade gold epithermal veins and thus could not provide ore with about 5 g/t gold head grades to the mill on a daily basis. Whereas the EVBC Reserves Technical Report assumed this higher-grade material would constitute 30% of the feedstock, currently less than 10% comprises the daily feed and the fiscal 2012 target is 18% of the feedstock
Prior to its acquisition by Kinbauri Gold, the El Valle Mine had been shut down by its then owner and remediation measures required were completed. On Kinbauri Gold’s acquisition of El Valle, a reclamation bond of €894,684 was deposited, as required by Spanish mining regulations. In fiscal 2010, an additional reclamation bond in the amount of €1,521,960 was deposited by Orvana and relates to the Company’s new tailings facility. As described above, during fiscal 2011, the Company was required to post an additional bond of €5 million with an additional €5 million cash bond due by June 28, 2012. The Company is working to demonstrate to the authorities that the additional bond due in June 2012 is not necessary. These funds are held in a Spanish financial institution as reclamation bonds and amount to approximately $10,074 at September 30, 2011 (2010 - $3,287
EMIPA, the Company's Boliviansubsidiary that operates the UMZ, currently has outstanding short-term loans in the aggregate principal amount of approximately $7,500.
The resultant lower copper and gold production, as well as the significant increase in consumption of sulphur, iron sponge and lime in the production process, has strained the Company’s free cash flow.