GREY:ATNAQ - Post by User
Comment by
2511MacDonaldon Aug 16, 2010 12:05am
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Post# 17352580
RE: RE: Time to reverse the downward trend....
RE: RE: Time to reverse the downward trend....This little junior operator does not have the right management in place to run a mine operation. As I've said before, the Briggs mine manager (VP from Canyon) needs to be replaced. He is in over his head and doesn't have mine management experience (he is a bean counter). The head count at Briggs needs to be reduced by 25% - 35%. The gold bond has been deferred because no one will lend them money until the Briggs project is cash flow positive. Management must focus on this task. My solution is to sell the company to New Gold for $1.00. New Gold owns the Mesquite mine which is located in California, not far from Briggs. In order to make the sale attractive, reserves must be extended to 10 years and cash costs must be reduced to under $650. It can be done but tough decisions will have to be made about replacing certain long time employees. These tough decisions are sometimes better made by an acquiring company. What is the value of ATN? The Pinson property is worth
.38 per share. Briggs is worth
.75 per share, after deduction of debt, assuming a NPV of $80 million at $1100 gold. Total NAV using these two components is $1.13 US per share. I anticipate that New Gold (NGD) could raise the $30 million cash needed to buy the 70% Pinson stake.