Post by
rragg on Sep 13, 2013 2:31pm
future in question
Enirgi's play was to take assets from Andover so there must be value in those hills. My understanding is that Andover owes 2.5M to Enirgi to get out of this. I just don't see why that is such a large sum to come up with for this company when they are dropping several hundred thousand drilling holes in the ground.
The Ophir JV is a good deal which is depending on one thing, buyers. If there are buyers out there for the mined materials then I think Andover probably will be carried by the JV into the future. If there are no buyers then the JV is a bust.
Alaska is an on hold, long term play. Nova Copper just came out with numbers that look good. I briefly scanned the data and it looked like just short of 1B in and they make 1B over the life of the open pit mine. 2 years to ge the mine running. I believe Andover's assets in Alaska are less than Nova Copper's so their numbers will be less. Of course all of this depends on one thing, a road. Until there is a road all of that land is nothing but grazing ground for Caribou and worth next to nothing. It will take 4 or 5 years to get a road in.
There are assets in the Trixie and Burgin. Maybe they are working on a JV for them? If they would start producing we would be golden (pardon the pun) but that has been talked about for what, 4 years now? There have been several interviews with Gordan where he has stated production will start the beginning of the next year but it never does.
The Big Hill..., who knows? Rio is dealing with their slide in the mine and also trying to cut back on expenses to deal with the falling commodity prices. There is little profit in mining these days with increased expenses and decreased prices. I'm not holding my breath on the Big Hill.
Over all, my opinion is that this has potential. BIG potential long term. I'm below water in the stock right now but have averaged down to a point it won't take much of a bounce to get green again. At this price it's tough not to buy more. I worry about management for 2 reasons. The first is that they entered into the JV with Enirgi and then it immediately fell apart. Gordan is supposed to be the man when it comes to managing this kind of thing but that just sounded like a bone head move. My second concern is lack of info coming forth. There's nothing. We hear about the JV with Enirgi and then they're filing against Andover. And then there's a JV with another company. Then the stop in trading and the price drops. And now nothing. Just throw a little positive news out there and I think this stock bumps.
C'mon Gordan, give us something. What is happening?