RE: Situation CriticalDepends how one looks at it. It would be less prudent if the company were to keep their expenses up by getting the mine up to par when there is no forseeable use for the mined material. i.e. somewhere to have the stockpiles milled at an economical rate.
This is worth more than the market is asking. This will in some years be worth many dollars. If one has the patience to wait for the U prices to go up and for there to be a mill where the stockpiles can be processed for a profit then those will be rewarded. This is going to be a long term investment, we are a long way off before we reach the good ol' days of +3.00 range.
Raising funds is extrememly difficult right now and for the company to conserve it's cash reserves is paramount IMO. While this news is not what I want to hear it is the correct thing to do right now.
Even if we had an agreement with DML I doubt EFR could make a profit at these current contract prices. We need U prices up considerably from these levels. It will come, just not in the next few months unless we get some bad production news from current mining companies. (like the catalyst for CCO last year with the flooded mine)
This of course is MHO.
FKLOSTER