robert quartermain gave an interview this week, which lasted about 25 minutes. i have summarized only the topics that haven't already been covered here, so i highly recommend you take the time to listen to it.

they made reference to last august, when the market for asset-backed commercial paper dried up. they are now moving toward resolution of the issue, and all of the smaller holders of the paper have signed off on the court-suggested plan. a jugde is reviewing the components of the plan, and they are hoping to resolve it over the next few weeks.

they wrote the asset down to $26 million based on the best available data from the study and analysis done by jp morgan, but regardless of however that comes out, the company has more than enough cash to finish pirquitas and continue exploration into 2009.

as far as the stock's price decline from 48 in november to 25 in recent times, they discussed the large short position that has built up, but there was no mention of hedging by the holders of the convertible notes. they also added that now long-term investors such as royce, chilton group, and van eck have come in.

quartermain also mentioned the issues depressing the share price since november were concerns that the mining companies were reporting cost increases, there were sub-prime risks, money was flowing out of mining stocks into "safer" etf's and there was considerable risk about the completion of pirquitas.

now they have the needed permits, the gas pipeline is complete, and they are halfway through the construction process. they believe that once it becomes clear that construction is going well, investors will return.

once pirquitas is commissioned we can expect a re-rating of the stock price, as there is a different market cap for producers, due to the lower risks.

you can find the interview at the beginning of part 2 of the third "hour."

http://www.financialsense.com/fsn/ma...