OTCPK:KRCLF - Post by User
Comment by
materialsgirlon Mar 26, 2022 4:53pm
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Post# 34548705
RE:Large low-grade projects offer more chances to get it right
RE:Large low-grade projects offer more chances to get it rightHorace
You are corect that low grade ore bodies are sometimes mined
for decades.
From once a mine like this starts it will likely keep on ticking for
decades. You lose more money by closing it that by keeping it
limping along. Rarely does such a business fully pay back the
invested capital and THEN earn a profit. Rarely.
It is possible now that a company that initiated building a low grade
nickel mine in 2016 may do well for a while. If we have high nickel
prices for a decade the invested capital could be paid back within
10 years.
Mark Selby and employees continue to earn a good income no
matter how badly the investors do.
All leaders of lousy deposits make up stories about why they will
do well.
Investors will be better off to stay away
Yes, rich deposits of anything are scarce in good jurisdictions.
I for one will never put any money into low grade ore bodies of anything.
mat