Otter treads water. High rainfall continued to affect its Tanami plant and cash flow had been very poor, to the extent that new borrowings have been made and payments delayed. The good news is that, even with production down, it is selling gold at prices well above its costs. Their plans to boost the company s cash reserves while production returns to its previous levels make a lot of sense, although more bad news over the next quarter could make things somewhat hairy. A speculative buy.
Gold miner loses plenty.
Otter is still feeling the effects of previously disclosed weather and contractor problems. Although the company has had its share of difficulties and it has had to defer some loan payments, I still have faith that Sir Ronald Brierley and the boys at Guinness Peat Group, now OTR s controlling shareholders, will have a trick or two up their sleeves. Otter performance deteriorates. This reflects a series of problems, ranging from bad weather to bad contractors, that have hurt the company s bottomline. However, thanks to a GPG-underwritten rights issue, the company is in a reasonable financial position and I still have faith that Sir Ronald Brierley and friends can make a difference.