"If toll treating is their best option, then we may as well have the public service running this company".
Let's have a bit of a look at this statement.
What are the advantages of toll treating.
I would think that time is one. I would think that you could get off the phone from the Norton management (I hold Norton) and 10 minutes later have a truck load of ore on it's way to Paddington mill.
That would give cash flow straight away. Money coming in and not just going out, even if it is not a huge amount it still beats starving to death.
Now I am the first to admit that what I know about mining gold you could carve on the edge of an Aspro with a crowbar, but I sure as hell know that money flowing in is good, and money only going out is bad.
Regis is also mentioned ( I hold Regis ).
Now Regis, I think, have ground that is very easy to mine and even though it is not very rich, I think about 2g per ton, they only need to scrape it up and run it through the plant. Very low costs. Maybe I am over simplifying the facts here, but for the sake of the argument, I will keep raving on.
I think Carrick has somewhat similar ground so our costs may not be that great and still leave a reasonable profit for Carrick with very little trouble for our effort.
The costs involved in buying our own plant and infrastructure are huge. ( insert massive dilution here in order to fund it all )
When would all of this infrastructure be ready for work? Bloody years!!
Why not be making money in the meanwhile? and if it is decided that we want our own plant then we will have plenty of money to work with and a record of income to help our argument for bank finance. ( insert less dilution here )
We have waited and waited and waited and waited and waited and waited and have I mentioned waited?
It would be bloody lovely to see some income after all this time.
I do not think I could hold on for the time it would take to get to mining it ourselves. I have good genes but I will only live so long!
Regards
Lockitt
CRK Price at posting:
39.0¢ Sentiment: None Disclosure: Held
