Yes as foretold here on the Blog of all Blogs it’s Death by a Thousand cuts for Central Rand Gold.
Those of you who invested here are now privy to the next calamitous chapter in the story. There’s no fool like a greedy fool and the old maxim “If it sounds too good to be true then it usually is” could have been written for this company.
The news at Central Rand is very Black indeed!
Cash held by the Company as at end December 2010 totalled US$14.6million. The lower than expected cash position can be attributed to:
· production of 9,321 ounces against a target of 19,308 ounces in the year ended 31 December 2010, due to delayed underground stoping caused by longer equipment lead times and initial adverse ground conditions;
· higher mine development costs due to poor ground conditions necessitating the implementation of an alternative mining method requiring increased materials and services for safe mining;
· higher plant processing expenditure for repairs and upgrades to improve capacity, availability and recovery rates;
· mining equipment has been self funded whilst the Company investigates alternate debt financing alternatives. The prospectus assumed a level of debt financing; and
· Delay in receiving Value Added Tax refunds of $2.5million.
As indicated above, the short term focus for the Group is cash preservation; this will be achieved by delaying capital expenditure, placing a moratorium on all recruitment coupled by delaying all non essential operational spend. The sale of the Company’s 50tph Gekko concentrator plant is at an advanced stage and the Company hopes to be able to provide an update on this shortly.
Now add on to that the rising water table currently flooding the mine and you get disaster!
As foretold DEATH BY A THOUSAND CUTS!
Stay well away from this joke of a company. Pain and suffering are regulatory words that need to be remembered when tempted to invest here! Brokerages have a name for investors who invest in companies like this. The term is; “The Sufferers!”