Post by
jonggua on Jun 02, 2012 12:11am
why reduced volumes
Johann Coatzee and Rob Slavik believed they could get 200 ton/hr (Ruby was using 2/3 of that for cbm) from the 3 trommels they had bought in Songea and also the one in 2010, so their prior projections came to 133 cbm/hr. This would take them to great eps at .5 g/m3. However, the 3 trommels together are now believed to only produce 40-60 cbm/hr. At .5 g/m3 and $1500 this will NOT make us profitable. At higher prices and 2 shifts a day, 15 net hours of production, 60 cbm/hr can get us to cash flow positive. Also, Rob bought the 2 other trommels in Songea very cheaply, but they were not in place this fall and so we've missed nearly a whole year of production from these other 2. I believe one of them is too small to work on its own, and also their earthmoving equipment is breaking down and not quickly repairable, nor is it enough to feed the trommels adequately. More money is needed for more trommels, and bigger ones, and also for better and more repairable earth moving equipment.
Comment by
Public_Heel on Jun 02, 2012 7:13pm
Thanks, jonggua. Given how tiny Ruby is, and given that it's still trying to establish itself as a working entity, this is a screwup of major proportions. Too bad.... and even worse that it's indicative of inexperience and ignorance of this type of operation, which means there's probably similar news coming in the future.
Comment by
cadillacsam on Jun 02, 2012 10:40pm
Why hasn't this information been made public weeks or months ago? Is that why the share price has fallen so much?