Tuesday, February 05, 2008
A couple of weeks ago I did an article Abcourt Mines, or why should I bother? which I thought was a fair but grouchy explanation of what Abcourt has and what I don't like to see in a junior miner. While I'm not ready to forgive or excuse their bad time lines, poor planning and just plain crappy investors relations I do in all fairness need to comment on their most recent news release, dated Feb 1.
The release announced the purchase of "flotation and grinding mill equipment plus all accessories including bins, conveyors, cyclones, pumps, tanks, overhead cranes, lime and reagents circuits, electrical circuits, a gravity circuit with two 30" Knelson separators, spare parts, etc, has been accepted. The whole for an amount of $1,375,000." I understand that this is previously enjoyed(used equipment) in good shape that must obviously have a both a cost and time savings compared to new. As such it should advance the project and spare us from new share dilution, yeah!!
They further state that between this purchase and existing plant they now have 90% of the equipment needed to start productions. The new/(used) equipment will be broken down and shipped to Abcourt starting in May making their constantly pushed out target of production in 18 months seem at least feasible.
My big concern is Abcourt's glaring omission in the news release; what is the 10% of missing plant? How available is it? What is its cost? Is Abcourt in negotiations to get this mystery equipment?
Having 90% of the plant in place is fine and all but if something vital to operations is still unaccounted for, give us the information. Arrgggg!, opps getting grouchy again
This announcement at least gives me some small hope that I will eventually get out from under this position without a loss. Is Abcourt a buy? Probably, but I’m too annoyed to bother right now, if it's still under .50 when they announce rest of the plant purchases and permiting, I'll probably step up and buy some more.
Monday, February 04, 2008
I'd just like to thank my supporters (your phony fiat money is in the mail) for their votes and hope that my second place showing in the Canadian Blog Awards and my growing number of hits is a sign that people are beginning to see the financial storm on the horizon. I’ve learned much in the last 16 months and hope I’ve managed to pass some of that knowledge along without offending the grammar police too much. This was a widely varied category with a number of strong blogs and since the Silver/Gold niche is still young, so hopefully I’ll be back next year!
Congratulations to Idea Drunk who won this years contest.