INCIDENT - What to think According to a local newspaper, the landslide occurred two weeks ago and 1/3 of the workforce was made redundant. We may be surprised at the lateness of Tuesday's press release, which refers to the decision to temporarily halt ongoing development activities taken in particular on the basis of current cash resources. This clarification, added to the main cause of the landslide, worries me because I wonder if it is not already preparing a new dilution of capital which should take place under very bad conditions. There would remain + - 5M in the bank, but they have in principle produced for a few days at full capacity, then half since the 13th.
I think this incident affects the mining operation (the extraction of new rock) which will be reduced to half its capacity, but not the plant which can operate normally at the feasibility study rates of 270tjp as we should have some stock of treatable rocks.
Will this negative event be really temporary (so far, we have not “yet?” Spoken of a production suspension)?
Hopefully Drover will communicate in the next few hours, after Tuesday's price crash, not to do so would be an insult to investors!