RIC Guidance has been lacking Francoeur was supposed to begin commercial production in 3Q11, but production has been delayed 6 to 9 months. Subsequently, RIC announced expected headgrades will be significantly lower . . . "the mineralized zone appears to be more discontinuous than in the initial geological model, and grades are mostly in the range of 4.5 g/t to 5.5 g/t Au versus the 2009 probable reserve grade of 6.9 g/t Au."
Maybe Francoeur production will be 22,000 to 25,000 per annum versus 30,000 to 35,000 target communicated to investors previously.
So, Francoeur development is costing more than initially guided, production will be 30% less than initially guided, and cost per oz will be higher than initially guided. RIC followed up this debacle with the PEA on Wasamac that has dropped the stock 16% so far.
As a backdrop to all this, the CEO started selling his stock last summer in the $12 range and then announced his resignation. What did he know that he did not tell shareholders?
Maybe it would be wise to let a new CEO reset investor expectations appropriately before taking a position in RIC shares.
GLTA