OTCPK:IVWFF - Post by User
Comment by
SergeGodinon Apr 22, 2011 9:29am
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Post# 18474205
RE: RE: Something's Afoot
RE: RE: Something's Afoot999,
You are correct. IVW has not given any guidance on if/when Magellan will resume operations.
I called the company and spoke to several people there.
I asked:
Since Magellan is being immediately place on care & maintenance, presumably this means that the company is not expecting to start up operations any time in the immediate future. Is this correct?"
> Yes
How long does the company expect to keep the mine in care & maintenance?
> Can't say.
How long can the company afford to keep the mine in care & maintenance?
> Cash reserves reported as of end of February $17M. Costs about $8M per year to keep the mine in care & maintenance?
The company expects to resume mining operations at Magellan at some point in the future?
> We hope so.
Is it reasonable to assume that mining operations and transportation will not resume for at least 6 months?
> Can't say.
It's unlikely to be less than six months?
> That might be a reasonable presumption, but we can't say.
Obviously, they can't commit to much. I am reading a bit into it based on the tone of voice and what they were not saying as much as what they were saying. The overall sentiment seemed to be fairly pessimistic for a resumption of mining operations anytime soon.
- Serge.