RNS discussion7 Feb 2017 10:16
So I've read the RNS again and although shareholders are naturally disappointed there are a number of mitigating factors, many of which have already been mentioned on the board but I'll draw them together here:
1) Those results are from the teething phase of the operation. It always takes time to ramp up to full production because delays, equipment failure and process refinement will happen in the beginning.
2) washing started in early September and finished in early November. So we're really only talking about just over two months' effort.
3) The larger of the washing plants had downtime as it was damaged (they are sorting this problem so it doesn't happen again this season).
4) Probably most importantly, the grades are higher than expected.
And of course the other RNS is a BIG vote of confidence in the project. That other, well-established company would not be fronting up another bucket load of cash at these early stages if they weren't impressed by what they'd seen in the first few months of production.