Re: Care and Maintenance.....
in response to
by
posted on
Oct 31, 2008 06:32PM
Producing Mines and "state-of-the-art" Mill
There is a very small chance that our shares will be worth anything in a few weeks. We owe quite a bit to our debtors, we're darn near out of cash and we will still have the cash outflow from care & maintenance. Unless nickel prices recover markedly in the next few weeks, our valuation as a mine will be lower than our outstanding debts and I don't expect that whatever we get from a sale or takeover will be enough to result in much, if any, return to shareholders. I'd be overjoyed to receive 10 cents per share. In a different market, our assets could be worth $100 million or more... but with mines worried about their own hides right now and conserving their cash, we'd be lucky to get a third of that (which won't even pay off our debt).
I remain cautiously optimistic but realisticly expectant of my LBE shares being expensive toilet paper.
Sigh. So it goes in the mining industry.