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''The new Vastly experienced Geo team will be in action very soon and a successful field season will have us very much on peoples radar again'' Jam down the road has run it's race here, people want gold now.
I can understand the feeling and I get the sentiment with AIM but if the new guy can turn this round that could all change .
Comms have been less than impressive so that can only get better and once the Gold starts to come out things will change .
The new Vastly experienced Geo team will be in action very soon and a successful field season will have us very much on peoples radar again
Fair point yayay. The tragedy is that after years of total lack of market interest and/or massive scepticism regarding the likelihood of getting Cononish into production and future potential, that ship had been turned around and we had a real sense of momentum.
And now we've totally and unnecessarily Hibsed it.
From what I've seen of AIM in the past, Eck, restoring credibility with the market is a thousand times more difficult than any operational issues, in whatever sector the company performs. The AIM herd are constantly looking for the next 'flavour of the month', except that 'month' is way beyond their span of attention, which often doesn't even survive half-an-hour. Once you've acquired a reputation for having a sour flavour it's very difficult to get anyone to want to taste you again.
Just had a wee top up of 3,769 @ £0.665
Alright Baz. The plant is the plant (kind of, though now with pumps that work etc), the resource is the resource (or is in all likelihood 2 x the resource, but that's another story). RG and others were heavily incentivised to get Cononish 'into production' by the end of 2020. I suspect (but don't know) that the Board agreed to the 30 Nov 'pour' with some reservations, but on the basis of assurances from RG that 'real' production would follow PDQ.
TB1872 makes relevant points about the impact of Covid but that should have been factored in to expectations (and Covid-related install problems don't account, for example, for the original mis-speccing of the pumps).
They weren't, production didn't follow, the CEO has disappointed the Board and the market and the suspicion is that his own self-interest played a part in that. The incentives have at least in part proved perverse.
So yes we agree that in the short term the boys and girls will get to work with the same plant, on the same resource(s). But hopefully in the medium term (ie the next few months) the company under the new CEO will be able to restore some credibility with the market, and therefore some shareholder value.
Sometimes the guys there just go along with the chief when they think differently. This change can only be a good thing. Some realism kicking in and start to get things moving. Normally a change like this boosts the share price.
Eck,reading your post we are actually agreeing.The gold pour announcement was stupidity at a high level but these fellers all sit round a table and they must have agreed it.They got got a new guy in but he will still sit round the table with these same fellers who knew the score all along.The plant has been built, how is the new guy going to change that? He will have to rely on the men on the ground to rejig the problems. The die is cast Eck, let's see how it pans out.(no pun intended.)
Eck71, got to agree. He broke the first rule of management. Don’t set targets that you can’t achieve. Secondly, the updates were woeful and lacking in information. Better with someone else in charge. Worth another punt at this price though. See whether the new guy updates more and with accurate info. I’m not too concerned as I only see an upside from here.
Baz, I respectfully disagree. From shareholders' perspective (including, obviously the Board), the leadership issue has not so much been production snagging which to an extent is to be expected, though as others have pointed out it seems odd not to have anticipated the nature of the ore under crushing, or the pump mis-spec, given the BPT was in part supposed to provide guidance on precisely these types of production questions.
It's the setting of expectations in official market communications which have left RG's credibility in tatters:
'Gold pour' 30 November. Disastrous and clearly not a gold pour at all. Could only have got away with it if followed up immediately with meaningful processing volume
December production update: 'Everything is rosy in the garden'. Outrageous in retrospect, given the January news.
January production update: wouldn't have been that bad, if it hadn't been preceded by two months of 'we're pouring gold and everything is peachy.'
So, the Board and market are left to draw one of two conclusions. Either RG knew in November and December that production snags were going to cause problems, in which case he was misleading the market. Or he didn't, in which case his grip on the production process was not competent. Either way, gotta go.
The new CEO has a ton of engineering experience and, let us hope, will improve communications to the market. They could hardly be any worse. Credibility had to be restored and that's why the change has been made. We will have to wait and see how the new CEO performs, but it's nonsense to say it won't make any difference.
Morning.
RM I tried to buy from first thing, no quotes available till 0847.
This is not a huge board reshuffle, more like the Mad Hatters Tea Party.These are a few guys who all know one another not a huge corporation.The new kid on the block will change nothing.The plant has been built and will have to be modified until it performs,him roarin' oot the windae at the workies will change nowt.We now await for another month.
Risk Manager - what /who/where is Shylock and PR100? if its ok to ask? Thanks in advance.
I think it's pretty obvious what has happened if you 'retire' with one month's notice with someone waiting to step into your shoes at the end of that month. I doubt media reporting of the change will stick to the coy wording of the RNS.
That is what I meant by "moved on". The RNS states "advised the Board of his intention to retire" and "tendered his resignation". To the man in the street, that suggests they were not forced out by the Chair and Board. In other words, they were sacked.
No, the Chair and Board demonstrating they have a grip and prepared to take the necessary action. Too many missteps from the CEO over the last few months. I think the market will ultimately view this as positive.
Absolute shocker of an RNS and terribly disappointing. Major internal disagreements with two of the board being "moved on", perhaps?
Great news - exactly what we need at this stage in the process is the appointment of someone with production experience. New legs, new energy! Hopefully spring will bring dore and sp revival
GLA