GREY:AGDXF - Post by User
Comment by
WileyCyteon Jul 25, 2017 11:52am
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Post# 26506190
RE:RE:RE:Update is out
RE:RE:RE:Update is outI am not sure how yesterday's news can be interpreted as being even remotely good, hence the run on the stock. This company has been atrocious at providing updates and silence with mining juniors rarely turns out well. You are seeing that today.
To summarize: The IR person they hired is a ghost, several directors or senior managers have been fired or quit recently, there was a run on the stock (SP went down 50% in a single day), a trading halt whereby the company claimed to not know the cause, and now, some 2-3 months after an update to operations should have been provided, they come out with a presser that leads with a drilling program proposal???
The update on the bloody mine we thought was going into production in Q4 was actually follow-up piece in this news release! A throw-away add-on for heavens sake! "...oh yeah and tunneling is going good".
Today's release basically said "we need to find more gold to mine before we can mine it. Oh, and we're going to have to adjust the reserves figure in the next month or so - cuz they likely aren't accurate."
This is going to wallow in the .05 to .08 range for a very long time folks. It's too bad. I lost big here. But I see no positive news whatsoever and I cut my losess. If someone with more experience speculating on mining juniors could enlighten me...I would appreciate it. I mean that sincerely.
I went through the updated (July 2017) presentation on their website. It states that if production begins in 2018, they are calling for only 15k Au in that first year. Ouch. That is not very much revenue folks. Not much at all. So it will be 2019 before the mine is producing a modest 30k Au....as per the original plan. So we're looking at 2 years before this mine can produce enough gold to start appreciably paying off debt/creditors. Not nearly enough upside.