Tuesday, June 4, 2013

RIO.t updated - Alex Black fights dissident block

We make no bones about respecting the humble Mr. Alex Black highly. The man did, after all, tend a Venture co into fruition and made mucho moola for the public rank and file. That sure as chit doesn't happen on the Venture as a rule, in fact it almost never happens on the Venture as the rock solid rule.

So the results of the AGM were released and there was a itsy bitsy, tiny fly in the ointment, observe ...

Alexander Black 103,545,604 - 99.9 - 3,030 - 0.1

ONLY 99.9% of the votes cast and despite locking up the Llama vote completely, some dolt with 3,000 shares made his unhappiness known to all. Tsk Tsk.
Today we got some real pooh in the henhouse as the singular road leading to La Arena has been blockaded. That there is what is called a wicked serious acute problem.

Mr. Black and the rest of RIO management have no manual to read for this one. No diesel means no production and the greatest challenge to Mr. Black's leadership is finding a way to get fuel to that plant, and as quickly as possible.

"Rio Alto Mining Ltd. has temporarily suspended mining activities at its La Arena gold oxide mine due to a blockade of the Trujillo-to-Huamachuco public road by a group led by the Central Unica de Rondas Campesinas. The Trujillo-to-Huamachuco road is the company's main access route for people and supplies.

Starting May 29, 2013, the CURC of the province of Sanchez Carrion -- La Libertad, declared an indefinite blockade of all the public access roads in the area of the province as a protest against the Peruvian judicial system, the local district attorney and the Peruvian police force. Since that date, the La Arena gold mine has been able to operate normally on a backup of supplies, but today fuel stocks have run down to a level where mining and civil construction activities have to cease. The remaining fuel will be sufficient to run the mine's gold processing facilities for another 14 days.

Rio Alto's total gold production during 2013 may be negatively impacted due to this situation. Rio Alto will provide updated guidance in this regard following the resumption of mining activities.
Naturally we here at Neer Do Well have the answer.