RE: 100% Ownership11 Jun 2020 11:27
Napom, tailings are tailings. They are what companies run through their plant when they are desperate and are unable to deliver good quality ore to a plant. GR said on the May webinar that there is approx 5-6 months of tailings to get through at RHA. The only chance of getting any profits out of the tailings is a highly efficient operation. We know from historical performance, or lack thereof, that RHA has been dogged by problems, despite having had ~ $20m spent on it. The only use the tailings will have will be to see how well the plant is running, and that is from a production perspective rather than a recovery perspective. If we are lucky the tailings will wash their face. They sure as hell wont turn any significant profit. Revenue, which you generally refer to rather than profit, is only of any use if it actually results in profit. You can have all the revenue in the world but if it isn't profit making it doesn't make a blind bit of difference.
As for yesterday's announcement, it may be a relatively cheap acquisition but it doesn't make a blind bit of difference if we are unable to mine it. There is more land within the EPO area than PREM could ever mine anyway. As such it is simple not needed. If anything it paints a picture that the company is taking the view that EPO is riskier than already perceived and they are looking for other assets to mine. Hardly the kind of news the market wants to hear.
You also make reference to the new areas being mined through a JV at no cost to PREM. Again this is untrue and shows your lack of understanding of how a JV works and the business world in general.
Bickmaster
Sign In
Follow the stocks
