RE: RE: A lot of assuptions,High fuel prices will increase operating costs, but a stronger Canadian $ should lessen the impact on Canadian companies. Also the possibility of sourcing foreign equipment could bring down Victory's capital costs.
With the BRIC countries and Asia developing at a rapid pace, demand for commodities should bring up prices for metal commodities. I believe we are in a new ballgame and investors/speculators have to make their decisions, be they pro or con.
As for interest rates, I have a Canadian Geothermal Company that recently received a $98.5 million 4.14% US - DOE backed loan through John Hancock Insurance Co, J.H is a subsidiary of a large Canadian Insurance Company..
When we consider Canada and it's mineral development, its possible that the Provinces might back a certain percentage of Victoy's need of approximately $600 million. There is also the possibility of Victory sourcing leased and used equipment to bring Cap costs down, but leased equipment wouldl increase operating costs.
In all I feel that I used enough worst case scenario in my assumptions.