gold outlook bad for RMS, page-11

To be fair it's every investor's own responsibility to do their due diligence.
I like to think of HC as its own community where people can freely share research and opinions.
The reader of each post has to verify the information before making any investment decisions.
Nothing I say is investment advice.
On that note I will offer my opinion on Edna May and give you my reasons why I came to this conclusion.

Edna May stage 3 is a dead duck, unless we see a significant uptick in gold price and or a dramatic reduction in mining costs.
The cons IMHO outweigh the pros.

Pros
#Edna May could extend mine life by more than 6 years.
#Edna May ore will be low strip which will eventually improve deposits profitability in a stronger gold market.

Cons
#Prohibitive initial capex outlay.
#Project looks like it will have a low to negative IRR in this current high-cost environment.
#Cash or equity payment of 20 million to EVN on commencement of stage 3 mining operations.
#Plant could potentially be better utilized by relocating to Rebecca in 2 years (this may have already been hinted in last month's Denver presentation). Tim made this quip about Rebecca "Our primary strategy at Rebecca is to leverage of the sunk capital in infrastructure we have in the region". Company Live Session - The Denver Gold Group, Inc. (Quote approx 5 minutes in)
#There's still potential to enhance the projects economics (a decrease in minelife and capex could mean an improved IRR) by reducing waste removal by cutting back and mining smaller pit shells.

I believe that these constant delays already tell us that Edna May's project economics aren't up to scratch.








Hope this helps