Central African Mining & Exploration (CFM.L)

Results out and, as expected, unexpected delay in major project and lame excuse.

On 29th September the company said that the cobalt processing plant, following commissioning in October, would start production in mid-December.

That was within a month of commissioning and only 10 weeks before expected start of production.

Now they say that “construction has been slightly held up as we needed cement from Zambia, which was unfortunately delayed, in order to ensure that the operation was being built to international standards. However we are now progressing and believe we will be in production early next year”.

Now, does any sensible person believe that a shortage of cement can delay a construction project less than a month from commissioning? Was this not known to management on 29th September? Why could they then give a fairly precise date for start of production, but 3 months later are only able to provide a vague start date of “early next year”?