Risk, I am confused. Either the company is lying about the equipment and everyone in SL and Liberia are lying about the average yields, or, you are miscalculating. SNEY has 5 dredges, two wash plants and various earth moving equipmnent. A simple calculation based on average yields in the Kono district and in Liberia will clearly show tens of millions in revenue (see some of my earlier posts for yield averages and throughput averages for our equipment).
I believe the challenge we are seeing today is not what they are able to extract from the ground, it is what is the most viable way to get said product to market. I think Austin made the correct assessment that they should have taken raw material (or a portion there of) and sold it in country at the drastically reduced valuation so as to improve immediate cash flow conditions. This would then allow them to investigate alternatives in export and processing so as to maximize their profit. Instead, we seem to be focused on going from dredge to jewelry store in one full sweep. This is extremely risky and costly for us share holders.
Furthermore, the early constrained revenue could afford better security (assuming that is their reasoning for delays) and will improve their chances of bringing on additional experienced dredge captains for the various locations.
All in all, i don't think we are looking at a company with low yields, I think we are looking at a company that is biting off more than they can chew. I hope I am wrong on this. We will have to just wait and see, I suppose.
Regards,
Ck
