Yet another Red Hot Penny Share recommendation down 70%.How do they do it.I've no doubt they will soon be dropping this from their portfolio.If nothing else they are very consisant.That's a polite way of saying they are useless.
Why would anyone put back production for 3 years? OK we're not going to take up small scale production this autumn but a DFS (not heard of that one before - PFS, FS, even BFS(Bankable) - but Definitive?) can't be going to take that long. It sounds to me like best use of limited $24m cash reserves to build up resource credentials and 'to underpin discussions on strategic alliances'.
So rather than just start producing a little and probably at little profit on such a small scale, build up confidence for JV or takeover. There is nothing to suggest 3 years delay except Cailey Barker's analysis. I am hopefully going to find out whether there is much truth in this. Where will the pog be in 3 years - no-one can be certain. Where will it be in 3 weeks? There is obviously more to this sudden change of tack than meets the eye - Mac DeGuire may well have a lot to do with the changes - "Mac's career in the international mining industry spans more than 40 years. In 2006 as senior vice president of Apex Silver Mines he initiated the sale of a share of the San Cristobal project to Sumitomo Corporation of Japan for $500m, having managed the pre-feasibility and definitive feasibility studies and the development plan for the project." - he's been doing DFS's before. Anyway, hope we're not moving into sofas - lol.
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