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Mariusz Skonieczny
Mariusz Skonieczny
Articles  | Author's Website |

Veris Gold Progress versus Problems

January 04, 2014 | About:

I put together a chart that shows the progress of each mine in terms of the number of tonnes processed per day. As you can see, the company has three mines: SSX, Smith, and Starvation.

VerisGoldProgressVsProblems.pngTwo 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

About the author:

Mariusz Skonieczny
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management firms that builds and manages customized investment portfolios for its clients. He is the author of Why Are we So Clueless about the Stock Market? Learn How to Invest Your Money, How to Pick Stocks, and How to Make Money in the Stock Market. Email: mskonieczny [at] classicvalueinvestors [dot] com. Webpage: www.classicvalueinvestors.com

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