What does it take? Finishing the construction of the Tabakoto mill expansion, according to the old Avr presentation was to take place at the end of March. This was the target day which Avr maintained for almost two years. As everyone now realises this never materialized. The lame explanation was the Mali coup on March 22 or nine days before the targeted construction completion.
It did not take long for Avr to come up with the excuse and suspend mill completion - the Mali situation and traveling restrictions for the designated construction crew. What is most appaling for me is that after the factvr came up with estimates showing that the mill was only completed 80 percent ?! This 80 percent over two years project life span translates in 4.8 months remaining to complete the job. This is not acceptable and more importantly, it shows either out of touch with the business reality, or utmost incompetence on the part of Barti crew at Avr.
Why ? Siple - to get from point A to point C on a straight line you need to pass point B. Point C (the development of Hounde property) needed financing and to raise the capex for future Hounde drillings and PEA, Avr needed to raise irs cash flow by doubling its production in Tabakoto. This was known to Avr management for the last two years.
I surely hope that the new Avr management after June 26, will get the priority straight by focussing on what matters the most - bringing the mill to 200,000 rate, temporary postponing Hounde exploration AND cutting G&A expenses and overheads. AK