I looked at Darques and the price being paid at the time of the announcement, and I couldn't believe what I was reading.
Paying $200 million or thereabouts for that project was insane, and a recipe for disaster, followed by many many years of crippling debt. Especially when you compare it to a company like FFX which paid $28 million for 3 million ounces of gold and a working 4.5 mtpa gold processing plant in a low cost jurisdiction.
What kind of experienced mining resources executive would have done such a thing to buy Darques at that price, because it obviously had the potential to be both a company destroyer, and a career destroyer.
At the time, I'd been looking to reinvest back in AMI and had been following it, but after the Darques announcement I gave that idea away completely.
Good luck to you guys though, but I'm not sure how you are going to get out of this fix very quickly.
Gw
AMI Price at posting:
33.0¢ Sentiment: None Disclosure: Not Held
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