NYSEAM:RVM - Post by User
Post by
petersburggrayon Jan 23, 2013 5:06am
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Post# 20875938
Troy
Troy Yesterdays news release states that there has been groundfall along the main underground haulage route with the good news that important underground mining equipment such as the crusher and converyor have not been damaged by falling rock. Access to main production area is blocked by groundfall. North ore body getting shotcreted now. Since RVM's last hedge ran out in December 2012 and has not hedged any production for 2013, in my opinion RVM has enough cash in the bank to weather a longer term Troy shutdown, if necessary. RVM dodged a big bullet by shutting the mine down after the hedges ran out instead of before. Given the timeframe of the MSHA citations and the language in the RVM's recent sedar filings I think it is possible that management has known and anticipated for many months that Troy would need to be put on care and maintenance for repairs but pushed to keep the mine producing long enough to fulfill RVM's hedge obligation so that the Troy shutdown would not cause insolvency.