RE:This is all about concentrate supply for Glencore BSdetector is exactly right. Opening Caribou will only make money for Glencore. The value to Trevali shareholders is zilch. Caribou is an albatross. When the price of zinc is up, it barely ekes out a profit, and when the price of zinc drops, it is a money pit. Even when it closes, it requires care and maintenance. Caribou is a toilet where investors flush their money. Caribou killed Blue Note, and it almost killed Trevali.
The ONLY value Caribou has is as an option on the price of zinc. The zinc rises to around $1.50, all the production can be hedged, and Caribou can become a money maker. But our bone headed management opened Caribou at $1.25. WHY??? The Caribou option has been exercised near breakeven. This completely defeats of purpose of even having a garbage asset like Caribou.