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Non-Tech : The Woodshed
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To: orkrious who wrote (44436)11/27/2007 10:01:26 AM
From: ItsAllCyclical  Read Replies (1) of 60918
 
NG - Looks like there was a pretty good warning burried in TCK's earnings over 1.5 months earlier...

Project execution strategy is under review for the Galore Creek deposit and an independent engineering firm has been engaged to prepare an updated feasibility study. Indications are that the project's capital cost will exceed the previous estimate in the October 2006 feasibility study by a very significant amount. The expected cost increases are resulting from, among other things, the inclusion of additional power line costs in connection with a higher-capacity power line for the project, escalating local and worldwide construction costs, further optimization of the project, including potential modifications to grind size, and the significant strengthening of the Canadian dollar against the US dollar. Capital cost increases are expected to be partially offset by improvements in operating costs. The updated feasibility study is targeted to be complete in the first half of 2008.

biz.yahoo.com

The question is why didn't NG feel this was material enough to issue a warning prior to this fiasco??? I do fault myself somewhat for not paying closer attention to TCK's earnings, but still.

In talking w/IR they thought they might have a problem as early as the early part of 2007, but the numbers were so outrageous that they thought there must be a mistake. They hired 7 independent contractators to confirm and when enough got back to them they issued yesterday's PR. Either way it was a gross miss and my confidence in present management is shattered.
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