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Message: kim

analyst remarks...ngd....What amounts to essentially a partial wall collapse in the open pit isn't great news, of course, but it could've been a lot worse. These things happen sometimes in mining, but in this case it's not irreparable. In addition to no injuries, the impact on the company is relatively small; even if the 15,000 ounces is delayed until next year, they represent about 3.7% of annual production. The diminished recovery rates do lower expected output this year, though this is likely "fixable" too, since grades haven't materially changed. While there is some unexpected extra work for management here, it does not change our outlook on the company or our recommendation. As evidence of that, Jeff Clark bought a small tranche today.


kim
Aug 29, 2013 11:37AM
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