RE:RE:Not everyone agrees VG should have place into receivershipIt is all just one big conspiracy by YG and FNNND right Badger 77777 ? THey are glad for the failure and the ability to take over the mine. hahaha.
SO you think VG could have made it ? They had NO money left. You also believe John when he said the mine could be back up and running in Spring '25, a few months from now ? Add those to your Project 250k tattoo you got.
No wonder your tunnel vision did not allow you to see the bad management style and poorly running Eagle mine which was demostrated quarter after quarter of results and excuses and NEXT Quarter it will be amazing. There were years to conclude things were not right and the heap leach failure, very likely to be found negligence is a major contributor in the future, is just the ending to a sad story and damage to so many people.
HoneyBadger77 wrote: Excerpt from the Yukon News (second link):
"The preliminary cost estimate for cleaning up the landslide, as put forward in court documents, is between $100 million and $150 million with between $40 million and $50 million required within the next 90 days alone."
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So how did YTG / EMR come up with the above preliminary cost estimate? Where's the decision supporting documentation? How do you do a preliminary cost estimate when you don't even know or understand the extent of the environmental impact or what even caused the event? Is the cost of clean up and remediation still expected to cost upwards of $150 million or is this estimate now excessive? Could the environmental clean up and remediation have proceeded and be funded by VG if the costs now turn out to be in the $100 to $150 million dollar range and the HLF is repairable and production able to resume? It sure looks like it now doesn't it? Where's that Independent engineering experts investigative report on the cause of the collapse? When can we expect it?
Prior to the slide VG was targeting $1,450 - $1,550 US AISC. So at $2,700 US gold and even using a $1,700 US AISC, that leaves ~ $1,000 US an ounce in profit. If VG had not been placed into receivership and provided reasonable YTG / EMR directives and timelines I believe it's highly probable that VG could have survived this. At $1,000 US an ounce profit and an eventual return to 170K plus ounces of gold production per year, VG would have had a net profit from production of at least $170 million US per year. And if gold goes to $3,000 US an ounce by year end as many are predicting the profit you can add another $51 million US in profit. Now consider that YTG's $100 to $150 million cost estimate is in CAD funds, not US dollars. And $220 million US in profit is actually about $300 million CAD (per year in profit at $3,000 US an ounce gold price).
And yet according to the court filing, YTG had concerns with VG's ability to fund the clean up and remediation work and receivership had to proceed quickly. Essentially YTG made their decision to force VG into receivership before they even knew for sure what they were dealing with. It's interesting how something as simple as diverting the water flow in Haggart Creek wasn't even contemplated or directed by YTG prior to the receivership application, yet has turned out to be a major step that has significantly helped to reduce the environmental impact and mitigate the risk to fish species, wildlife and contamination of other waterways that connect to Haggart Creek.
It's also interesting how YTG quickly found $50 million funding to help PWC get going but never offered interim funding or brought PWC in from the start to work with them and allow VG to seek other means of additional interim financing.
There's something fishy with YTG's handling of this event from the get go and unfortunately the common shareholders are paying the price. Even a PWC representative recently commented that the situation at Eagle is different than any of their other contracts in that their focus is usually solely on clean up and remediation. My take on the PWC comment is that PWC's role is to also see if the mine can eventually resume production and what it will take to get it there. Hopefully PWC and Parsons are able to get this situation under control and Eagle eventually back into production for the benefit of all concerned. At $2,700 US gold and proven production of at least 170 to 200K ounces of gold per year, this project could eventually take an interesting and unexpected turn yet.
KenoHillYT, thank-you for your informative posts, almost always backed up by links to support your thoughts. There appears to still be a lot of readers / followers on this bullboard so keep 'em coming!
My opinion only, DYODD.
HB77