Dave, I would guess that your decision not to restart the mill is partly a tactical move to pressure MAC into a quick decision. However I would see some risks attached to shutting the mill for longer periods ie. months or years, especially if power and heat are shut off as well. Longer shutdowns even when reasonable preparations are taken always result in gradual equipment degradation of engines, motors, bearings, pumps, valves, piping, gear boxes, electrical gear, instruments, controls, and all other things that will rust or freeze. The cost of a restart after a year's outage may cost more than continued operation.
Other factors that have an important bearing on length of shutdown include security of the site and finding/training new plant personnel. I'm sure you're quite aware of all these things and will be careful not to create a larger problem through this period.
I would like to see Bumbat controlled entirely by MGR if that is financially possible. In that regard have you considered a rights offering to existing shareholders?
I remain "cautiously optimistic" about MGR mainly because of your high level of technical expertise and candor. Clearly you must make some hard decisions and I have no doubt that they will be made with the shareholders best interests in mind.
Pete |
