It would be in the best interests of the company to shelve plans for CD development.
Its not too late.
Even if IO rose from here, they are not getting high enough prices for their low
quality ore.
A $50million development cost money can be better spent.
Im not convinced that they will get the $50 mill back from mining at CD over the
only 5 years life of the mine.
Its a waste of shareholder capital. Shelve the plan (it can always reinstalled) and
watch the share price go up!
Use $40 mill of that to pay off debt (get those mongrel debt holders off their backs). Without
debt they can get spot price for their ore (about 15% more I'm assuming)
Those debt holders dont know how much office
costs are associated with hedging, they only know about lending money. They are the
ones forcing AGO into hedging. Other miners are not hedging like AGO.
If some of you think its good to do, AGO is hedging right now for 2 months ahead and how
much do you think they are getting for their 57%. Its probably below cost that they are selling it for.
And then use the other $10 mill on a drilling campaign for Lithium. Lithium ore price is not dropping
and demand will be here for a few years.
Unfort. Frisco has half been given away to Pls but Atlas has many other sites with good potential
for Li.
If that happens Im in
AGO Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
