TSX:SGR.UN - Post by User
Post by
Gaberlunzieon Jan 25, 2015 9:06am
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Post# 23360593
Gibson needs all the slack he can get
Gibson needs all the slack he can get Rightly or wrongly - time will tell - Gibson believes he can turn the San Gold situation around. In any event he is working against the clock. The quicker he can show his ideas working, the better deal he can cut with the money people.
Two actions so far stand out. He has shattered the old management culture by moving the head office to Toronto and on site, he has shown that by more selective mining the gold content of ore treated can be raised - so far at the expense of tonnage. I hope these moves indicate an end to contract mining and drilling by companies owned by board members.
This mine used to make money but ill-conceived, capital intense expansion has drained the coffers. So far, the mill has been too big for the capability of the mine to produce the ore tonnage called for.
Building a crew of production oriented people of the type needed at Sancould take a while. They may be there already but need leadership. I wish Gibson luck and hope he can play for time long enough to turn this operation around while shaking out the dross.
I made money on this stock but got out a while back when the various operating ratios turned sick. Meanwhile all we can do is keep a sharp eye on this situation. This could be the turn around situation of the year.