GREY:LBEFF - Post by User
Comment by
JohnEStromJron Dec 01, 2009 3:34pm
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Post# 16541831
RE: John E S
RE: John E Srastaman1,
I'm touched. You care! ;)
An update on institutional ownership in Liberty Mines. According to Reuters the number is six funds and institutional investors. On the Stockwatch site they list four. Both a far cry from "The Legend" and his post regarding 25 such funds and institutional investors.
Congratulations to Liberty Mines shareholders [except for a few on this forum] The stock IS up nicely and on good volume so it's something to do with Liberty Mines and not the economy or the inventory. Keep in mind that nickel is selling for just under $7.50 per pound and there is currently a huge 133,000+ metric tonne inventory at the LME.
What could affect the current price? If Liberty Mines was using a portion of their revenues to pay down on the several loans with Jilin Jien instead of, like the old days, waiting until the loan was due. The trouble with the old days is that when the money was due there wasn't any. It had been used to keep the company afloat as they scrambled to figure a way out of their cash problem. Never rob Peter to pay Paul as sooner or later it WILL come back to haunt you. It did.
When we see a concerted effort to pay down those loans rather than waiting until the notes are due that will be a very healthy strategy but I've yet to see that this is the case. There are a variety of other forces at play - including forces running up the price while bailing but I don't think that is the case here. I sure hope it's not. We'll see.
I've heard nothing from management about sinking the shaft at Redstone to get at the rich ore below and at that hanging wall anomaly. It will take over 18 months to sink the shaft and install the head gear. Not sure if management sold the head gear but I think they did sell the hoist. Why is this important? McWatters has a fairly short life - probably at best 18 months. Maybe even one year. When that ore is exhausted all Liberty Mines will have is Redstone [low production] and, when up and running, Hart. Hopefully there will be no hiccups with getting Hart up and running as those payments to Jilin Jien must be made. Again, Liberty Mines does not want to repeat their past mistakes of over-committing and under producing.