Cline Mining Corporation T.CMK

TK mining question.

[straightbull]

CMK is paying a fortune to have TK mining handle the actual mining at the mine. This does not make sense from a bisness point of view. When are they going to start going it alone? Would it be a simple turnkey operation to switch from TK Mining to Cline Mining?

[stockhousepundit]

Utilizing TK may actually be saving money, by eliminating HR, H & S, and a multitude of administrative costs that such as medicare/medicaid and pension obligations.  From the acquirers standpoint, this is also a plus given they will not have to compensate displaced workers with buyouts if they choose to use their own miners instead of TK's.

[ark88]

Outsourcing often can be a money saver in most industries, unfortunately, if GCE and WTN is any example, cost containment thru the use of a mining contractor may be difficult to achieve. GCE for instance, fired Ledcor and are trying to manage the production on their own with mixed results, IMO. My take on New Elk is that the initial cost number will be decent, but over time will increase. It's

[kidman]

TK Mining H&S cost Cline 3 months of development work when their man was killed and the MSHA closed ALL work on the Blue seam for 3 months. Yes,if Cline is bought-out TK mining workers will be dropped like a rock.