OTCQX:DMMIF - Post by User
Comment by
dmuyon Feb 16, 2012 9:56pm
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Post# 19547217
RE: Kinross
RE: Kinross Yeah, if anyone screwed up it is Kinross by signing the agreement in principle before they had their capital deployment act together. They have too much on their plate and have to allocate their funds to the projects with the best returns. Why they are only realizing this now is beyond me. While the Ecuadorian tax regime may allow for a profitable operation, it's not going to be enough to jump FDN to the head of the queue IMO. I have no idea how this will turn out for K and FDN.
However I don't think this affects DMM in any material way and I don't think they're holding back on ramping up any longer; although you can't expect things to go as fast as you'd like in Ecuador. Maybe working on the other 2 declines was "busy work" but now they're just focusing on the main decline. Even though they don't have a signed contract I think they have at least a verbal understanding that is entirely workable,