Re: Seriously
posted on
Apr 29, 2008 10:08AM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Say what you want 20121, building a mine will be the end of Thyee at this time. I personally don't think it's feasible yet. How do you think they're going to get all that equipment? How much do you think it will cost to build a mine? They don't even have a feasibility study. Who would put their money in to build this thing? They need equipment, personell, permits, studies, a processing plant... and this is on a resource that's spread over 2 sites. It's not the time. I always tout the proximity to YK as a benefit but it's also expensive up there.
I don't want to sound negative on TDC. I absolutely am not. But you talk about how no one has said they're selling. I'll tell you this, if they decided it's time to build a mine, I'm long gone. It would be ridiculous.
What they need is a new property that can garner some excitement and they need to continue to add to these resources. These are not that high grade so they'll need to find a lot more gold than they have to make this feasible. In the main time, the best thing for the share price would be to get the resource up and give investors some hope of a big one as they briefly had with Big Sky. I suggest the new property be somewhere else though. Maybe Yukon.
Just do some numbers and ask yourself how much it would actually cost to build a mine now? Consider that there is a big shortage of equipment. Even tires on those big trucks are in short supply... companies are paying 4 times there cost off the internet! (I read this somewhere, can't validate it).
Then consider the share dillution that would come from that. Consider that this would still end up a pretty small mine, producing few ounces per year and to get to that point you have a pile of hurdles to overcome.
Sorry if this is offensive but keep in mind, I'm not bashing the stock, just the concept of prematurely moving towards a mining phase.