RE: Disappointed with the REI fail to see how anyone can be disappointed here.
Its increased the net value of every tonne in the ground by sacrificing the lower grade tonnage. In theory we have the same amounts of metal just at a far more economical grade....ie when Teck buys us it will save them billions in operations cost. It makes it a lot more attractive to a buyer, which is a better way to present the thing for sale.
I think people need to remember that with 65% of the shares belonging to insiders they hold virtually no accountability to us as even if we all conspired together they could still steer the ship any way they chose....they own too much of the company. That being said.....guys who have been doing this for years are clearly not dumb enough to be driving this thing into the ground....they above anyone know what they have.
Honestly, I think people have missed the strategy in this resource estimate, and a lot of people had their hopes up that we would be doubling or maybe even tripling the tonnage. However you slice up the pie.....this thing is still OVER A BILLION TONNES and is bigger than probably 90-95% of deposits in the world. Its still a monster resource.
People need to remember that mines take a long time to set up, and a long time to deplete. Schaft Creek was ballparked at having a 23 year mine life. Since we're selling the project, most of our retail investors would prefer to see the bulk tonnage over the grade. But if we were buying a project, we would be looking at the OPERATIONS COSTS to the company over that 23 years. If the project was costing too much to pull a tonne out of the ground we would pass it by. If we hadnt changed up the grades theres a possibility Teck might have interpreted it the same way. The higher grades reflect a savings of billions to Teck......which makes it a lot more attractive to them, or other big companies to buy.
Theres huge deposits in the world....much bigger than Schaft Creek, that have been left alone because the operations costs were too much. Now we have a very attractive BILLION TONNE deposit.
I congratulate management for elimnating that hurdle personally.
You wanna drink your celebratory drinks in millilitres.....or in ounces? Both ways do the job, but ones a lot more efficient.
Rogue,