RE:Old Sangdong, share price and valuations74volfram wrote: Some would even prefer losing all of 1M shares rather than merging with the one producing miner which actually has a record of "bootstrapping" old mines into profitable operation.
That's just it, I don't think it'd ultimately be a loss . . . except for the board if hte company went to "zero expendature" survival mode . . . I think eventually just the possession of that asset would maek them at the least the senior partner in whatever goes on thre, and though small scale production WOULD keep profits down, it would also eventually be profitable without borrowing money (reinvesting profits) IF they want until Tungsten prices recover . . . for while I think 5 years isn't an unreasonable span on the outside edge forwared . .
No, it would not by any means be a total loss for Woulfe stockholders, though it perhaps would be for Almonty. Something folks should think about when considering the negative side of the dealing falling apart for them as their remaining properties continue to run on tailings . . .
Sure, they want to keep control. We don't always get what we want, and they HAD control of their mines and COULD have purchased Sangdong when the rights were sold back in the day. Stupid enough of them given what hte Japanese thought of hte property . . . I'm rather surprised no Japanese companies bid on the rights themselves, save the Japanese mining techniques during the 1930's tended to get alot of workers killed, so there might be a bit of bad blood there. The human safety factor being the only element of the old techniques (aside from the environmental damage. which can be remediated) which wouldn't fly today . . . it sort of requires a large pool of expendable slave labor.
So .. . Deal doesn't go through, Woulfe gets nothing, still has megatons of tunsten . . . Almonty gets nothing, is still heading for rapid doom and the need to aquire another proeprty . . . now WHO should be desperate in this situation? If its Woulfe then management is doing it ALL wrong.