Bruce: Production is still targeted for an April, 1998 startup. Yes, I wish Maxam was producing too...It'd be a shame for us if PMs were to blast off into outer space but Maxam went nowhere on account of no production.
IMO, the least risky of the DD stocks at this point is Maxam Gold. They've drilled, fire assayed, calculated proven and probable reserves, and they're gearing up for production in a few months. No other DD company is this far along. If production proves to be economic, the company will have every option open to it, including:
1) JV other properties with other companies (good option, IMO...the JV partner does most of the work and Maxam gets a big piece of the action).
2) Maxam develops them itself (good option, IMO. Large scale production requires capital, and some share dilution may result).
3) Sell other properties off for cash and perhaps production royalties (good option if Maxam drills the properties out first to get full value for them).
4) Sell the company off (won't happen, IMO...Dale probably wants to keep the company in the family, and you don't sell a company with over 100 sq. miles of promising properties for the value of just 2 sq. miles drilled to 100 feet).
Happy holidays, all!
Rand |
