Hi Bob, I believe when Brett Lambert made the comment about Coyote not
covering administration costs the price of AU-Gold was over $200 less an oz,
& your right Bob it would be nice to know ABU's total administration costings including
all directors contacted remunerations & yes agree we don't wish to keep mining Coyote if there is no benefit to share holders, that's why many of us are asking for a review!
With the money that was used to refurbish coyote it should give a relatively trouble free run maintenance wise, & if we can derive enough residual profit that would allow us to upgrade the gravity plant at Old Pirate by re leasing & running Coyote for an additional 12 months its a hell of a better option than coping dilution through the need to raise capital to keep running & or dilution through attracting a joint venture entity, or a token take over offer while our s/p is depressed!
If using Coyote gives us a reasonable free cash flow margin how good would it be to have
our own plant at Old Pirate functioning in 12-15 months time, self funding exploration & planning for the future with out dilution, if Coyote keeps running with clear residual margins the share price will rise not insinuating it will rocket but it will rise from were it is & the higher it is the better position we will be in to negotiate, be it a take over premium to what ever the current s/p, or whatever joint venture proposals that may present,, while we await Bumblebee drill results etc.(we retain our optionality & that's good)
Don't you think ABU could widen the current producing pit shells, accessible depth is relative to the pits width & or commence additional extraction pits by accessing for example old glory 6mts @ 37 g p/t at only 12mts depth, or pursuing veins at western limb that is some 300mts in length having been thus far been the stand out producer at 10.5g p/t, other pits on site at Old Pirate could be commenced if we have the funds to peruse the known gold veins.
Understand your point regarding the cost of widening pits re volume considerations
but all can be taken into consideration.
Would be SIETHING even more if the POG continues to rise & we have relinquished
our only source of revenue being Coyote & sit here as prey for a low ball take over.
Its not that buccaneer is not a fantastic asset its the two & half three years inclusive of red tape & construction time frame it will likely take to commence production, any one thinking we will survive that time period with out a low ball take over offer especially with the AU-pog
on the rise is over optimistic to say the least.
Would hate the knee jerk reaction & stance take by ABU Directors to shut down operations
at Old Pirate to be akin to throwing the baby out with the bathwater, now that sentiment
has changed for the whole gold sector inline with the rising POG & deterioration in global markets, FFS we said were now miners & have only just commenced 24hr 7 day operations,
toughen the fck up BOD, open your eyes to the deteriorating world markets, support the new
feller MR Brett Lambert whom thus far is doing well!
gltah-salt
ABU Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
(20min delay)