RE:When will IMG take a run at MXI?
I find that I am less convinced that IMG will "take a run" at Merrex. Looking through the IMG first quarter financials, it looks as if their "all in cost" was $1135/oz which means they are losing $140/oz for every oz. they produce and in the first quarter that was 208,000 oz. or $29 million. As you point out, IMG is more limited by cash than it appears and their debt is eating through their cash. I think the more likely scenario at the moment is that IMG will be forced to consider selling their interest in MXI to another miner with deeper pockets and the ability to think longer term. Let's face it, IMG has made a hash out of almost everything they've done. Also, I think the argument made by RR that "The low spot gold price is also working in our favour" is completely nonsensical in that it both reduces IMG's ability to buy MXI on a number of metrics, but also reduces the value of MXI's assets while production costs are going to remain the same or rise. For gold, these are the dog days of summer and hopefully September will bring the usual move upwards!