Loki01, MUN's current total expenses have been significantly more than the cash obtained from mining. In view of that how do you think successfully mining a small gold deposit of approximately 20,000 ounces over a period of 18 months is going to make a major difference?
We need to consider the total costs involved. If successful will MUN make enough to be cash flow positive?
I guess another point is that if successful it could buy MUN time to allow for a big surge in the gold price which of course could start to make MUN's business model look more attractive. Though it was meant to be fantastic at just US$750. lol
To me the priorities for MUN are:
1. Becoming cash flow positive so the company can prosper. This is not necessarily the same as making EBITDA earnings which MUN has announced in its quarterlies.
2. A substantial rise in the price of gold.
I'm wondering to what extent 1. requires 2. as a pre condition.
MUN Price at posting:
8.8¢ Sentiment: Hold Disclosure: Not Held
