RE: RE: Great result I take a slightly different view of the present state of ARZ. I do not fault the BOD for the slow pace of the second mine; the capital costs are large, and the need to ensure a proper return and derisk projects is prudent. Especially at Joanna, with the refractory ore. The write-offs of major projects by Barrick, Kinross, Newmont, etc. over the last 2 years are staggering sums of money spent on failure.
I don't sit on the BOD's of any of these companies with the massive write-offs, and accordingly cannot answer as to what exactly they missed and what the true goals were. But, the amounts of money lost, CEO's replaced, etc. should speak volumes.
I can blame the ARZ BOD for two things:
1) Not filling capacity at Casa Berardi with open pit material to utilize capacity, level out production and keep themselves from becoming so vulnerable due to the 2012 Q3 results/reforecast.
2) The LSG JV for the 30km of Casa Berardi deformation zone not included in the 7km core mine property. This option was granted to LSG in 2007 for $5m/50%. LSG has made statements to the effect that after the 40% Quebec exploration credits, their net cost is $3m. This was incredibly shortsighted on the BOD, which includes ARZ's founders, and in particular, David Hall.
I own ARZ, AGI, and NOX.