best course of action in my opinion is spliting all the other assets into a refloat as a new company with new managements and then find a join venture partner to develope those assets as the metal price recover. No more depleting of funds on current management or non working asset such as smorkey hill. Well in this configuration the new company would be much more attractive than an exploration company as resources already defined and FSB already done so development can go right ahead. Also the new entity will look much more cleaner as a new startup.
Smorkey Hill will be revisited in a later date when the ecconomical conditition return.
Well this has been done all the time. Take a look at BTR which used to be AIM which also collapse into maintainent at the peak of 2008 GFC and funding issue shares drop to less than 1c when it being shut downed with a less than half constructed mined. After the shutdown AIM has been renamed and brought in new management and a new JV partner to restart the the construction. After the restart the share fired up to more than $1.30 at some stage.
So it s rubbish talk to say that PLA have no value left as if the resource vaporised under ground. One the labour issue in SA resolved by the mining industry + the union + SA gov, business will be as usual.
PLA Price at posting:
6.7¢ Sentiment: None Disclosure: Not Held
