Unlike some other mining companies, whose CEO’s backgrounds include mining and or geological engineering/expertise, etc..., Lenic’s background is banking.
Accordingly, it would be fair and safe to say that he does not possess the mining / geological proficiencies that other CEO’s may have in these related fields.
That, (in itself), is not an important issue in my mind, because running a mining company is not necessarily akin to running a mine nor does it requires understanding rock formations / faults, etc.
Lenic has an extensive Banking experience and his educational credentials (Masters Degree in Science and a BA in Business Administration), are well suited for the job of CEO.
That being said, we must recognize and appreciate that when Lenic makes public statements about mining / geological operations, he ought to rely on information that is given to him by the mining / geologist expert(s) of the company.
In other words, Lenic is the “messenger” in these scenarios. Yet, when the expectations do not materialize (i.e. Shafter), he is the one held accountable... Fair enough it is part of the package, and to his credit, Lenic has not shifted the blame down the chain of command.
Think about it for a minute. Last spring, Lenic was telling the world that Shafter was expected to achieve 1500tpd very quickly (within 90 days!).
As we all know, “Information is only as good as its source” and “decisions are only as good as the information considered”...
The question then becomes: Who was the source of the information upon which Lenic told the world that Shafter was about to ramp up so quickly?
Before I answer this question, it should be pointed out that Lenic showed full confidence in this information and trusted the source to be able to deliver.
Shafter’s original operation/mine manager was Jason Cyr.
I strongly suspect Cyr to have been the “source” of the information regarding Shafter’s ramp up expectations.
Incidentally, or should I say coincidently, Mr. Cyr was terminated by the company not too long after the facts? (BTW he has been replaced by Dr. Sadek El-Alfy – current mine manager at Shafter).
The details and reasons for Mr. Cyr’s dismissal were never shared with investors, but reading between the lines could suggest Cyr failed to deliver on the ground?
To be fair and equitable with the “messenger” concept, it would appear the “source” of the information provided to Lenic regarding La Negra, is opposite to that of Shafter. Insofar as La Negra is concerned, Lenic’s statements would belong to the “under promise and over deliver”
What has happened at Shafter cannot be a singular issue, but a combination of factors (workers, equipment and unexpected surprises), let us hope the latter includes additional gold contamination ;-)...
Lastly, if I am right about Mr. Cyr (failing to deliver on the ground), then the fact that our CEO replaced him reveals Lenic’s character and that he has balls!
We can safely say now that Shafter ramping up quickly is/was not in the cards... and it is still not likely to happen anytime soon. However, it is important to remember is that the high grade ore is still all there for Aurcana to mine! In fact, future discoveries will undoubtedly further increase these resources as well as the mine life (and profitability!).
Unless MP's suddenly go through the roof, I don’t expect the sp to do much until mid-summer / early fall...
It is appalling to see the SP sub $1.00 (more at sub $0.90...), but remember Aurcana would be profitable at $15.00 silver!
After the rain, the sunshine will come back! Be prepared to wear your dark shades!
I would be happy, but not surprised to see AUN @ $1.50 next fall.