GREY:LRTNF - Post by User
Comment by
Megamisteron Aug 16, 2021 7:51pm
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Post# 33714801
RE:RE:Unusual
RE:RE:UnusualSeen a similar pattern of performance/results over and over again with several gold mines in Quebec and Ontario.. Some were shaft mines, some were open pit mines, some were shaft mines that became open pit mines.
Personally think we are still in "good straights" with PGM's current management team and the logical fiscally responsible phased approach they are following to get to higher grades of gold ore and get that ore economically processed.
Getting to commercialization and the mine being able to pay it's bills was (is) of paramount significance to me. Sustaining operations without having to constantly go hat in hand borrowing millions and/or issuing millions of shares/warrants is an accomplishment of itself.
What we have with PGM is a "frugal" cost conscious rehabilitated now producing gold mine. PGM is not anywhere near declaring a $1000 US profit per oz (which is the difference between the often touted ASIC of $787 US per oz and the current spot price of $1788 US per oz).
I firmly believe that the money PGM is currently getting for it's gold production is being used to pay bills AND perform the mine to get to maximum profitability, likely still 2-3 years off.
Hiring a second crew (albeit on a contractual basis), now drawing and processing ore from the East ramp, paying it's debt obligations (i.e., interest on loans, financial contributions to first nations, living up to it's callable gold stream & production payment agreements) are all a financial drain on PGM at this time.
To me commercialization means that PGM is handling it's financial obligations at this time. Like others I want PGM to get to zone 8 ASAP, however in PGM's communicated phased approach plan, they were not reaching zone 8 until 2023. As to when they get there will depend on whether of not the plan is to get there are by ramp or rehabilitated shaft and side drilling, etc.
I was in Red Lake last week visiting friends. Fires were not an issue locally, but did see alot of tripods with fire hoses running to sprinkler heads mounted on the tripods to protect property and housing, just in case. Had a fun time touring the area and the various mine sites including Madsen. Was obvious (self evident) that Evolution Mining is a big player in the region!
Regards to all.