RE: Re Investing.27 May 2018 16:21
The Board did say on the 3rd of May 2018 "Production was below expectations due to a 23% decrease in the average processed grade quarter on quarter resulting from lower than expected grades from the transitional zone, providing access to Stage 4A of the open pit. Despite lower than expected grades mined from the open pit impacting production, improved productivity, higher recoveries, stringent cost control and a strengthening gold price all were marked contributions to the quarterly performance"- the market ignored that on the 3rd of May.
The only difference with this production update was they stated they had difficulties with production equipment and this had been rectified,i wonder how long this has been going on for?.
Yes the 580,000 oz guidance was set after a good 4th Q and was far too ambitious for a mine which has a base load of 500,000.1st Q production of 124,000 would give you the 500k per annum but having said that they say the 2nd Q will be weak so would not look forward to the prelims on the 9th of July.
Looking back over its production figs they yo yo all over the place which in mining i guess is quite normal.It sounds like they were pushing on too hard and something had to give.