Troubling NewsThis is now the third troubling news release we've received from KGI in as many weeks.
- First came the news that they sold a huge royalty stream to FNV, despite previous assurances that they were doing OK, even with low gold prices;
- Second, the news that they processed only 1150 ounces of ore per day in the recent quarter, despite prior assurances that Phase II of the mine expansion was essentially complete, thus that we were now working at a rate of 1400 to 1600 tons per day;
- Now today, we have the news that Brian is no longer the CEO and that Mark Tessier is no longer COO.
It doesn't take a genius to connect the dots here. Evidently there has been some kind of operational problem, down a mile underground where the ore is being cut and filled, and it looks like Mark ended up as the fall guy, and Brian got taken down a notch as well, just for good measure.
My hunch is that one of the major shareholders has lost patience waiting for Brian make good on his promises to get us up to 2200 tons per day, and has demanded some major changes. We may have experienced a milder form of the coup d'état that happened at Wesdome three months ago.
Well, I'm sorry to see Mark go. My sense is that he was patient, careful, attentive to detail, and very hard working. Today's news release had the usual cold heartless language "
The Company thanks Mr. Tessier for his contributions to the Company and wishes him all the best in his future endeavours. " What a way to go ...
Let's hope that George Ogilvie isn't under so much pressure to "perform" that he makes a real mess of something.