I did a bit of digging....there are at least 3 small plants in and around the gold resource, last sale was 2.6-2.8m for the 2nd hand kit. I would imagine that it would need to be relocated and refurbed. MCR management stated "3rd party tolling", and the ore is shallow.......there is a listed co with production to the nth - so one can get a rough est of costs .....
basically 15-20k Oz per year, with a 4+ life......this could be 3-5m p.a in c/flow to the company. you then need to ask "what is the probability of any other gold resources being found (given history, probably 50-70%). I don't have a list of royalties for gold by permit ????????
westtrader - yes, that is an obvious risk !.....I agree with Billyen re the usa debt position......for an interesting viewpoint - chk the Yen value over the past 3+ years........and then have a look at the huge fluctuations in the US $ over the last 9 months or so........potentially - they may have to "raise rates" just to defend their currency (speculation on my part.....).
concur with you Gavinbell - they have basically hinted that Ni will be depressed for a while yet .......when one sums the SHFE and LME volunes - there has been little change over the past 12 months (480-500Kt +/-).......the only "interesting thing" is all of the stuff on the SHFE is under warrant....ie cant buy physical.... this is "strange" when one counts up all the ni production that has been shut-in or gone broke ....................
the other obvious risk - is Nickel_west, and how does BHP deal with mcr / pos / igo / wsa / pan and others for toll processing and smelting.......obviously, MCR management will not spend the $$$ to get back into nickel production until this is finalised (expiry dates for former WMC dirt versus new discoveries). ALL of the aussie players are affected in one way or another by BHP ......
rgds
V_H
MCR Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
