Veris Gold Progress versus Problems
Two mines are doing well but one is not. SSX used to contribute 1,000 tones per day in May and June, but then the amount dropped significantly in August. Smith mine has been pretty consistent, but November was the best at 1,700 tonnes per day. Starvation mine was put into production this year. It started very low at 266 tonnes per day and kept ramping up to 1,000 tonnes per day in November. Starvation in operating at beyond management’s expectations.
What is frustrating is that while Smith and Starvation is doing well, SSX had to disappoint. But even with SSX not operating optimally, the total is up. So the progress is there. Unfortunately with the current price of gold, this progress is not good enough. With gold at $1,200 per ounce, the company will continue to struggle. With gold at $1,500, everything changes.
Disclosures: Long Veris Gold