Black Mountain Resources (BMZ) has one of the most appalling records in the sector for missing development deadlines
Black Mountain Resources (BMZ) has one of the most appalling records in the sector for missing development deadlines. In December 2011, the company said silver production at its Montana property would start within three months. In August 2012, production was still three months away. On 30 April this year, still without any production under its belt, the company foreshadowed output in the current quarter. The share price, having fallen 80% since the beginning of 2012, should be highly leveraged to a production start at what are some very rich silver deposits in historically proven mining areas of Montana. The track record is now so egregiously askew from past promises, with no start date now on the table, that a credibility rebuilding change in the board will most likely be needed if the value potential of an eventual production start is to be fully realised.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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