Value of TulawakaIt is hard to believe that not many see the value in this 30% asset. Stock should be at least $2.50. Yes it is making money, and yes the debt will be paid off in the first quarter of 2008 but there is something bigger and much longer range than the Tulawaka mine here. This mill asset is in place, it has permitting and it is in an area with huge potential for custom milling of small deposits throughout the area for years to come. The cost of building a new plant has doubled in the past 14 months but the value of this asset has more than doubled due to logistics. I appreciate that a lot of the money went into mine developement which does not have asset value other the tailings catchment once this project is mined out but the process plant value is major. (Do not underestimate the tailings catchment value, tailings ponds cost a lot of money) You can also bet that Barrick didn't Mickey Mouse the construction here. It will be a well designed long life plant that will allow many years of use long after Tulawaka is finished. Don't get me wrong here either, I think Tulawaka has much more life than our partner wants us to think. There is likely some foot dragging going on with reserve calculations because Barrick have that option. They may even be trying to figure out how they can legally underestimate the reserves so that they can get 100% control for less money before making a significant discovery. In any event I cannot see ABX operating this project with a partner for to much longer. I just hope MDN are not foolish enough to sell this fantastic asset to Barrick. If they do lets hope they tie a royalty to it that makes it work while.
Buying more MDN and gold today. I didn't think I was going to get another chance for gold under 800 or MDN under a buck. Its Merry Christmas time I guess. Buy and hold until 2009 becuase I am guessing 2008 is going to be a year markets are going to be to wild to predict and you could get caught being out rather than in.