is cre just barracks tenant farmer ?

Just thoughts here-I wish to throw no aspersions on BARRACKs integrity in business or contracts with CRE being other than on normal commercial terms.CRe has willing placed itself where it is as have many other junior mining companies in their infancy to get going.


CRE bears all the risks
irrespective of the gold price,
Barrack credits CRE's production as its own,
at less than the gold price(given its margin)
and pays for it 50? days later

No wonder barrack was happy to relinquish crumb tenements to CRE such as apollo to give them heart?.
Cre takes all the risk ($210m or so down the tubes so far)
And Barrack collects milling costs plus a margin
Keeps it's own mill full
By CRE copping the running costs for nearly two out of every three months.(costs plus 10%? though on only 87%? recovery and up the recovery and does Barrack get even more costs?)
That makes BARRACKS ore all that much cheaper to process.
ADDS PRODUCTION OUNCES TO BARRACK

That leaves CRE but the slave(tenant farmer)in a third world (gold)economy,only able to buy from the company store(Barracks Mill),but only if they'll sell to you and living in the hope of striking the motherlode,WHEN YOU DON"T EVEN OWN WHAT YOU HARVEST and only have a right to supply for less than 2yrs if you do.

What happens if you do strike the mother lode. Master may say thank you tenant for doing the dirty work and here's a few pennies for your efforts.
What choice would CRE have?

CRE is economically stuck like it was for tenant farmers on a plantation in the good old days.

and CRE shareholders what? The bill payers-losers
Yessuum master sahib-whatever you say

THIS IS CRE's REAL SITUATION - NOW

That's because CRE has never known better.FML knows how to throw off the shackles of self imposed economic serfdom and fly free.

would you rather be in the NORTH or the SOUTH?

DYOR-is the glass half full or half empty