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Gold/Mining/Energy : Copper Fox -- Ignore unavailable to you. Want to Upgrade?

To: Metacomet who wrote (8815)	12/21/2014 3:18:27 PM
From: louel	3 Recommendations Recommended By dsikorsk minder Underhill69 Read Replies (2) \| Respond to of 10654

"What is your overall take on how we find ourselves here. Others are satisfied with the explanation that we have an uneconomic project" First I think shareholders would have been a lot better off if they had kept CUU on to it's own. By adding the Subs. D/F , N/F and buying into CXM with CUU money it has diluted the Value. As now Copper Fox is one segment of a conglomerate. It is no longer what was originally invested in. If and when it is bought out or money forwarded by Teck. A portion will be paid as a dividend. Like the $20M was. That I suggest happened thanks to Ernesto, who wanted some of his cash back. So for that to take place other share holders had to also be paid. The balance will be used in advancing or entering into other projects. As for Shaft Creek. Had Copper Fox refused to move from the Salazar agreement. They may have found it very hard to find a buyer under all the conditions that prevail. Given a 8.3 post tax IRR and no road use or right of way access negotiated with GCMC. That would leave an outside buyer in an uncertain position as to further reduction of the return. It could mean a reduction of another 1 to 2 % And not knowing how long before GCMC may complete the road to 65km where it would join the Shaft Creek spur. There are mines operating with an 11% IRR but they do not suffer some of the problems that could be encountered here. KGC has one in Africa. How ever it is a totally different story with Teck . Teck is a 50% partner in GCMC. Where Galore has a 60% higher calculated rate of return. Galore could stand alone. They know that. Shaft Creek IRR will be enhanced simply by the fact it shares the same owner. That makes it not premier but a very viable . With shared infrastructure combined they will offer one parent company, generations of mining cycles. You can View the IRRs of various mining ventures in the following link. juniorgoldminerseeker.blogspot.ca