RE:Why Mr Davis must be sacked!1) $4.00US was always a trigger point for me to start to scale out especially when mining grades were in a declining phase.
2)I raised thispoint before. The mining sector as a whole unless forced upon by debt is totally ignorant to risk management. I never understood why the firm didn't no hedge to protect the dividend coming from operating profits wasn't made especially when the sector got all of this easy capital after the credit crisis and overbiult itself with overcapacity and when the price of copper was obviously in a bearish descending triangle pattern.
If I were a mining CEO I would be tickled to death to receive a 30% return above all in costs and hedge 100% of my production at that point.
3)I think that it was very fortunate he did nothing.
4) I disagree Davis raised the capex on the copper expansion by 25 million from what was anticipated on the feasibility study while it was in construction. If I can raise my bar after the fact I can always look good/smart.
5)The deal is better than Centamin's 50 /50 arrangement.
There is quite of bit of subtle underperformance not mentioned. Why is the Cu recovery during the supergene phase depending upon the quarter anywhere from 2-7% below what was anticipated in the feasibility study?. I also see nothing about potential selling price penalties in the feasibility study either. They ALWAYS receive 5-10% below average spot for their copper. Perhaps it is a kickback they want to sweep under the carpet.