RE: Trigs, please answer these 2 questionswell...my hope that the board might have less horse s*&t on it this week hasn't been realized, only Monday afternoon and already there's piles of it from everyone's favourite equine poop producer...(i don't pay much attention to screen names so to make things easier for me, I've associated the t-man with trigger the horse, as he acts so much like a horses a$$....
so hmm...the new hope...
maybe if/when he buys he'd be kind/smart enough to shut the f*&k up....(don't count on it....remember when he promised he was going on vacation and never once stopped posting to give us a well deserved rest...uh...yeah, ok)....might even help solve the subdury ventillation problem that he keeps noting if he were to stop spewing soooooo much hot air down there...he is funny though, coming here to call everyone but himself a loser while admonishing you all not to call him names causes its so immature...writing "nah i don't put anyone down" and then doing nothing but to everone on the board...acting like a complete and utter idiot and either oblivious to that reality or not caring because of his agenda/ego....i have no idea if he's a paid basher or not, don't care, but no question in my mind that he's no one's friend...might be why he has so much spare time to spend here between his currency trading...
anyway, fwiw and in case anyone is eating up his spin, one of the points he harps about is fni not selling higher grade ore first, especially into a high commodity price...gee, when I started reseraching mining companies awhile back, I recall one of the very first things that i read was that it was fairly standard industry practice to mine lower grade ore first, especially in high commodity price swings, as it would perhaps not otherwise be economincally recoverable...save the higher grade stuff for later, extend the life of the mine, etc...here is one articulation of this from an article on the zeel web site...but lots and lots of articles are out there that say the same thing...this one is about gold stocks, but the rationale is equally applicable to fni...
y'all have a nice day;
The valuation of gold stocks tells the story. But interestingly, one of the big reasons for these rising costs is intentional on the miners’ part. This happens through shifting operations to mine a higher percentage of low-grade ores. Initially this doesn’t make any sense, but from the eyes of a gold mine operator it becomes clearer.
First we need to understand the key measure of a reserve versus a resource, which is economic viability. If an ounce of gold costs less to produce than what it sells for at market, among other factors, it can be classified as a reserve ounce. So as the price of gold continues to rise, lower-grade ore, or ore with a lower mineralized content of gold, becomes profitable to mine whereas it may not have been before.
While we investors want to see big profits when gold rises, mine operators are more concerned with maximizing the lives of their mines. So while the markets can support miners running a higher percentage of low-grade ore through their mills, enough so that the miners can still cover their costs and perhaps still turn a small profit, they will take advantage of this. Ultimately this extends the life of a mine as it conserves high-grade reserves.