RE:RE:Doubling production at KLAll the discussions about transportation access, mill capacity involving WM and BAR are with the assumption that KL will be eventual owner supremo of the two. Yes, KL along with the master pupetteer (ES) has big plan for the company in the future, e.g. doubling the capacity of the Detour Mill, etc...We are just trying to see the future, on how it could shape up (in a few years). But, for BAR and WM the short term goal would be how to grow the company to fetch an attractive offer from the senior (KL). Of course, ES has a large role to play...the price has to be right for him, and we are as motal shareholders are riding on his coattails. That said, here are my speculations:
- WM: They have enough money (some $54M cash?) to drill/drill/and drill to come up with an RE, something over 10Moz would be wonderful for a good offer (see ceo.ca/wm for some napkin math that produces huge REs). They don't have to worry about the money to build a mill, since that would be KL's decision. Note that KL+ES+Day Construction have 10+22+5 = 37%OS, a choke hold on WM.
- BAR: ES has just increased his holding to 9.9%, not quite yet a choke hold, but there will be more acquisition coming either from ES, or KL (most likely KL as a strategic partner with A seat on the BoD, just like in the case of WM). BAR now has some money for drilling, but ES did not seem to believe that DW can "stitch things together". WM could probably do the stitching. Expect some kind of JV, so that WM can help BAR with the drilling around areas 50 and 52. While BAR could perhaps expand the RE at Martiniere/Bug Lake?
The two companies could try to achieve this goal within a year, since KL could not affort to wait for too long. They may set things up for WM to be their proxy in taking over BAR and become a subsidiary for exploration of the area. Just my 2-cent from looking at my crytal ball.
GH11
-------------------------
6Azithromycin wrote: fastandfurious wrote: Just got word from some of the miners at DGC and they are saying KL is planning on doubling production soon after taking over . This will reduce mine life to 13 years instead of 26 under DGC management.
they will also be moving the main camp at a cost of 500 million in the next few years .
ES is setting all this up to fit that plan , there won't be any mills at WM as they will be trucking the ore to the main Detour mill .
You dont know what youre talking about. Permits, equipment, planning, there will be no doubling of anything for 1 or 2 years and Eric decides nothing anymore. And KL doesnt own wm yet either.
6A