RE:Aspen FormationBobFromBoston, this was a beautiful first post on this board. Contributions from people like you would only add to the quality of discussion. Want to clarify one point to your summary below:
But Brendan responded better yet, might be securing the longitudinal cash flow from Platosa to fund explorations [rather than relying solely on financings and JVs]. Brendan emphasized (elsewhere) the plan for Platosa is to push hard for profitability to fund other development projects. #3 of which is Jaboncillo/PDN which have potential footprints in skarn perhaps 25 times as big as that of the current Platosa mine (22:40), and are on the Platosa property.
Cahill opend up the topic of financing KIlgore and Silver City by representing what you wrote - than Platosa will be profitable operation and will generate sufficient cash flow for other projects. Well, as good as this statement is for publuic consumption, its is also very misleading and Matt was quick to bring other financing options. In Q3 Exn reported improvement in Platosa and yet Exn still lost money. Cahill was also laxed with the truth stating that this was a record production quarter, which is not the case. The point is for Exn to be profitable in Platosa, they need much higher silver price and even then the reduced production of 2 -2.5 million ounseof silver eq. will put a lid of the amount of free cash flow. Between Kilgore and Silver City, the exploration capex in the next years alone would be in the tens of millions. $10 million CAD rouhly translate into 50,000 meters of drilling
As for the potentil of other Platosa, we have heard this story before as Exn was exploring greater Platosa for the last 25 years. After rounds of dilutions and hundreds of millions poored into Platosa, the returns hardly have been stellar. That is why Exn management is living of "borrowed" time as far as Platosa is concerned. I do not think I am alone thinking that Exn future lies somewhere else.