First the easy part... I agree about Boda/Kaiser. I think they do almost everything right to make it more attractive. I think they can add more value by slowly adding more high grade ounces but this needs to be done gradually without too much expense as these high grade zones are deep. They are trying to find shallow deposit that can change everything - if they find one. Hence why I suggest they should look at MAG - if MAG's ground has potential to produce small but high grade shallow deposit. It actually does not take much to change the economics on this project - regarding the Open Pits. if they can't find shallow higher grade deposit then care and maintenance.
Now the more difficult part:
no one suggested ALK to sell all of their CAI investment... we discussed this in the past but you may have missed it. ALK should have reduced their position as part of risk mitigation strategy. And they had plenty of time for this. Matter of fact they had time to even sell the lot if they wanted to.
CAI did not go under out of the blue. They actually had problems from day 1 when they started production - from day 1 or thereabouts. And these problems are well documented aka reported.
And these problems lasted for while so ALK actually could have exit 100% if they were on top of the things but I never suggested such action. ALK has Risk Committee which should be assessing risks regarding their operations, investments, procurement etc... This committee should have picked the elevated risks with their CAI investment and should have recommend reducing the investment. That did not happen and now ALK will probably lose 100% of their investment.
Also when one sees the investment is sinking they should not worry what will happen to the other party SP but they should act in their own interest and sell and recover what you can. If that means destroying the other SP then be it. How much did IG care when he had to sell ALK shares and destroying ALK's SP in the process.
I am very much aware about the GMD trade and it was a good trade. But ALK should have actually bought GMD. The reason why they sold and made money is because they failed to lure GMD and left it too long and the former SAR man took her away. This was the period when ALK's MD was making noise about becoming multi-mine operator which never happened.
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