OTCQX:RPMGD - Post by User
Comment by
Looking4Doubleson Jul 10, 2017 1:36pm
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Post# 26451659
RE:April prodution is confusing
RE:April prodution is confusingI share your concern, as you know by now. The "worst" that I expected was about 3200 oz for June (actual was 2894) However, my estimate was based on their truck availability issues and the on-going work on the leach pad expansion. I did "not" see the cracked water vessel issue coming.
As noted previously, a late delay in getting the production number would be a BAD sign and . . it was. The cracked water vessel issue should also impact July's production a bit. The bigger issues are: 1.) cash burn (with unexpected repairs) 2.) truck availability - said they were running again, but an 80% availability number suggests the age of the fleet will be an on-going issue & 3.) grade of the ore being mined. (last we heard, it was below expectations)
Bill's credibility issues continue.
- He originally painted a picture of 72K oz/yr for 2017 and commercial production in the 1st qtr. (When we didn't hear anything at the Mar conf. I knew there were problems)
- Then commercial production was moved to the 2nd qtr (and we got a "bit" of production)
- Then we were told commercial production was being defined as 60% of the 72K.
- Now we are being told 3rd qtr and since their definition of commercial prod. is 60% that would be 10,740 oz for the qtr, which they will not do.
- to hit the magic number for a "month" requires about 3580 oz. which I "now" don't expect until August at the earliest and more realistically Sept/Oct.
Bottom line: Dropping my previous estimate for the year from 30-32K to around 25-29K and think we need to watch the cash burn issue carefully. (expecting 1-2 cent loss for the qtr, but we won't see the number til late August) Hence my earlier concern with respect to cash burn - since we will not get any info. to assess the issue til then. This summer scenario was exactly what I was worried about (ie delays, etc and no info.) and what convinced me to exit my position in April when commercial production was moved to the 3rd qtr. Good Luck