Larry, <<yet to see an explanation that makes sense>> I assume you mean the Peoria plant? One that works for me: The Peoria plant isn't abandoned, just delayed for BLM permits and funding. What I understand is that Maxam expected funding which fell through (IPM?) that would have allowed mining on schedule. The mills were such a long lead time item they had to be ordered when they were. If Maxam could finish the mine and was allowed to mine by the BLM at Peoria, they would be mining for cash flow today. Look at all the infrastructure at Peoria, mills, ponds, earthmoving equipment, etc., however there is still more equipment required, electric power, (leach and recovery system?). The resource work already conducted by Hewlett is sufficient for the company to mine economically (Maxam believes), but not acceptable by BLM. Again, only the BLM and funding are slowing things down. I view this as a delay, not terminal. The company continues to get smarter about their desert dirt every day, something that eventually enhances book and share holder value IMO.
<<I was expecting some results from that plant>> So was I. Notice that I was buying high with that expectation also, I'm disappointed too. Sometimes speculation and the rubber on the road are inconsistent. The current low price does however allow averaging down for those that believe the current situation only temporary. |
