RE:RE:So it's Friday and I'm watching the sun
Thanks Roberto, nice midnight reading. ;)
"Montana wants some money, but should that project be approved, and should the estimates of the property's worth prove accurate, that could mean a boost for HL."
True. Had a second read thanks for suggesting a deeper dig.
So the solution was to "release Mr. Baker" from his duties?
"Hecla may come into compliance, the DEQ said, by paying the necessary expenses incurred by the DEQ in reclaiming Zortman-Landusky and also the Basin Creek and Beal Mountain mine sites."
"Another option, the DEQ said, is demonstrating that Baker is no longer mining or conducting exploration activities in Montana".
How does that help in regards reclamation or futher mining industry in Montana?
I assume HL didn't want to pay on behalf of Mr. Baker or on principle for that matter?
I wouldn't have wanted to be on the board when recent events came down if this was part of the "transition". Probably lots of pen waiving. ;)
500mm oz is a lot of economic activity, IMO better to make mine remediation part of the new workings/contract/new agreement, learn and move on.
In that respect HKH is a step in the right direction. They didn't store stuff properly and didn't pass a discharge standard, paid the fine and will try to do better.
As a side note I mentioned some time back that I had discarded my UKHM annual reports from 1992, 3,4, and 1995 but I came across them the other day; they didn't make it to the trash - sorry, recycling. Interesting reading; the deposits of interest were Silver King, Bellkeno, and ... Husky SW. Total resource then was about 20M oz of silver, with a possible resource of 200M oz for their properties - actually a pretty good guess.
:) The lost decade, it was a debacle and investors didn't want it.
Ongoing topics of discussion included the 'perennial silver supply deficit'(!), and some problems with environmental issues, water etc.
The tailings pile survey at that time showed 15M oz of silver, 90M lbs of lead, and 60M lbs of zinc, worth $100M at the time. Now they may be worth $600M, assuming the survey was accurate. We've heard almost nothing about those tailings for quite a while, and even then, only the silver.
At the time of discharge it was considered "waste", the profits were that good! Actually those old floats didn't good secondary recovery... With today's modern technology and challenge to some engineers the reclamation would happen in short order.
Stephen Powell - He took over a bunch of debt (90's) and found more reserves but by 97 that was over.
The 1995 report claimed UKHM would be restarting in late '96 at 368 tpd, with cash cost of US4.44/oz, and silver price at about US10 bucks. I remember talking to CEO Stephen Powell on the phone and UKHM was finalizing decisions on the equipment choices in anticipation of startup the next year, 1996 ... didn't happen.
During the period there were a number of compaaies and stock movements in the ownership mix and in the end imo the numbers didn't make sense and there certainly didn't appears to be massive profits on the horizon, the world had moved on.
Even with the AXR startup in 2011-13 they didn't make much money in any quarters and actually had a net loss of $50M for the run (largely due to impairment charges, otherwise about broke even) on 30 to 24 dollar silver before shutting down, after big investment $$. AEM environmental group contributed, otherwise the loss would have been worse. AEM was a good money maker until they sold it.
With this backdrop and 30$ silver lets see what HL comes up for earnings for the next quarter.
Remember to have fun. It's not about the money, is it? ;)