Out of all the things that may be pushing potential investors away, I feel that the fact Rio was unable to make these mines profitable may be what looms over people's heads. I'm not incredibly knowledgeable on the subject, and correct me if I'm wrong, but my understanding is that Rio attempted to mine these pits for years and eventually gave up due to the poor economics of the project. My key question to address this is how will Gutnick and co do a better job? I image that newer technology may play a key role, and there is also the fact that Rio may have looked for a more substantial profit due to the company's comparatively monolithic size. However, I can't reconcile the supposed excellent economics of the mine as it stands now with Rio's inability to make money. I'm curious to hear what you guys think about this, and whether it is a matter of me simply being uninformed.
MED Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
