RE:RE:RE:RE:RE:RE:RE:...that should give some boost Auburn:
Florida Canyon has not delivered to plan during the startup and in the first Q Alo had control, that we can all agree on. That is why the team is working on leaching and recovery model, along with the production profile going forward. More technical analysis in the 43-101 should yield a plan that is attainable and predictable, rather than the former PEA. This is one element the market absolutely needs to have to properly value the operations.
To your other points:
- With FC and Standard in close proximity, I see no reason to hold on to those other legacy RPM assets. They won't help FC and Standard due to distance, and my priority would be on building AP vs. those assets.
- They have have shown their hand and highlighted their focus on driving value from "Core" assets - this is what the market needs to see.
- Stabilizing the balance sheet had to be top of mind for management, to increase flexibility and remove any financial strain, doubt or uncertainty.
- Focus on improving the balance sheet is what the market needs to see. They accomplished this with this transaction
- Dependable, predictable LOM's are required for valuation. This is coming and will solidify FY19 (and beyond) forecasts.
So, while I have my big beefs with management, these moves are smart, focussed and help alleviate risk and uncertanty. They address many concerns put forth by analysts. Next step is to complete the 43-101 and mind plan and then PROVE Florida Canyon can live up to the new plan. We will see.
B