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Trouble is we need $1500 gold not $1000 like we seem to be heading for. Still no idea what the $500 mill debts are all about
Seems to me many more losers than winners in this. Brent Cook says these NI reports are notoriously unreliable and we sure found that out. I was guilty of drinking the corporate kool-aid on this like a lot of others. Safe jurisdiction, 1m oz ready to production, etc.
I learned a lesson with this although I am not quite sure yet what it was.
I have the same question. There was an article I posted a link to where it said 'could owe up to $500 million' but another analysis where they were holding to 10c a share guidance before the BK, based that on financings to date.
Midway Gold Gamble Lost
The quality of those guesses often vary by the size of the mine and which company is behind it. According to industry watchers Midway was run on a comparative shoe string and there was little margin in the company reserves to allow a slower than expected start up.
Industry analyst stated that Midway had no where near the deep pockets that Newmont or Barrick has to develop a property. Yet even for the big boys gold mining yields far more misses than hits and it is still a gamble.
http://www.coyote-tv.com/2015/07/02/midway-gold-gamble-lost/
I'm cursing you too for this running commentary
Lots of people got blindsided by this one
They got approval of the court to continue to draw down on the credit line to keep the corp afloat
This is a serious wake up call for the value of the NIs and the DD the banks do. This was a high profile project in a 'safe' jurisdiction.
Maybe they want to underplay what's there for some nefarious reason
The NI report says they most they're going to get out of Pan is 240,000 oz including what's on the pad. Better hope that Gustavson got that wrong too. I see no hope here at all.
Grasping at straws
They talk about getting 232,000 oz out after total life of mine of 3 years, but only after putting in an additional $60 million.
The project is projected to have a total lifespan of 3 years. During the life of mine about 302,400 ounces of gold are projected to be mined and about 215,400 ounces of gold recovered and produced for sale. An additional 17,381 ounces is expected to be recovered from ore placed on the leach pad prior to June 25, 2015. The timing of the ounces recovered is based on a gold
recovery curve developed from the actual recovered metal from the lower than anticipated ore permeability. An additional capital investment of $60.57 million, including contingency is expected to be required including reclamation, leach pad expansion and sustaining capital for the process plant. The cash operating cost is projected to be $727 per ounce of gold.
22.6 Sensitivity Analysis
Consistent with almost all gold projects, the Pan Project is very sensitive to changes in the price of gold. For this study, an increase in the average gold price from $1,200 to $1,920 per ounce
increases the NPV @ 5% from $25.6 million to $174.0 million.
If the NPV at $1200 oz gold is $25 mill it's hard to see how there'll be anyting left for the shareholders.
That's a good one
New NI says NPV of Pan is just $25 mill so hard to see how
From the new NI (on sedar)
25.1 Conclusions
This study demonstrates that a profitable operation of the Pan Project is feasible. Past errors have impacted the project and its cash flows. Gustavson believes that this is a reasonable presentation of the project potential. As such it is not without risks. Gustavson believes that these can be mitigated.
Midway Gold Issues NI 43 101 Technical Report 2015 Feasibility Study for the Pan Gold Project
Marketwired
June 25, 2015: 08:14 PM ET
Midway Gold Corp. (OTC PINK:MDWCQ) (the "Company" or "Midway") announced that it has filed the results for the National Instrument 43-101 Technical Report for the Pan Mine. The technical report was filed on Sedar and can be found at www.sedar.com or on the Company's website at www.midwaygold.com.
Midway also reports that Brad Blacketor, CFO, has announced his intentions to leave the Company effective July 6, 2015.
Bill Zisch, President and CEO, stated, "I want to thank Brad for his leadership and teamwork during his time here at Midway and we all wish him the best in his future endeavors."
Are you sure those analyst reports are not just old? They do not reflect the uncertainties of Chap 11 as to what equity might be left.
Take your own advice lol
Yep, not worth selling at 10c IMO.
Not buying any more either -just holding - no one knows what will happen to this yet
New corporate update today
DENVER, CO / ACCESSWIRE / May 26, 2015 / Midway Gold Corp. (MDW) (MDW) (the "Company" or "Midway") remains in active discussions with its Senior Lender regarding strategic partnerships, asset sale opportunities and debt refinancing opportunities. As previously disclosed, the terms of a waiver with regard to the Senior Debt have lapsed and the Company remains in discussions to obtain additional waivers. The Company's Senior Lender has provided the Company with a notice alleging an event of default based on the non-monetary conditions which were previously waived. The notice does not invoke or demand any specific remedies but states that it reserves all rights. Midway believes the notice is intended to document the conditions as viewed by Senior Lender and, while there can be no assurances, we will continue working toward maximizing value for our stakeholders by pursuing our strategic alternatives.
Midway Gold Corp.
Jaime Wells, 720-979-0900
Investor Relations
Nice, we can exhale (at least for now)
There's a limited amount if info on CBA website but I don't think they just lend to big mining corps
https://www.commbank.com.au/corporate/industries/institutional/natural-resources.html?ei=mv_industries_natural-resources-4627
"Our suite of current projects represent the diversity of our funding solutions and the breadth of our client base"
"As your banking partner we can offer you extensive transaction experience across the full capital spectrum including strong financing credentials for companies of all sizes and support for the full spectrum of development"
One would hope that all tha parties here are on conference calls working out to do the right thing and make this work for all shareholders. This is a highly visible project.
Actually he (yahoo poster) didn't say what IR (jamie) told him. Just said he asked questions and got answers for 10 mins and afterwards decided to sell.
My own feeling is that even if they declare a default that won't be the end of the game by a long chalk.
Hope so - no don't want to call IR - I;'m a coward. We'll find out soon enough I guess. Just hoping we get out alive
Guy on yahoo boards said he spoke to IR yesterday and that as a result he is sellling.. seems he is genuine enough - but you never know really
Anyway I am hanging on
"Averaging down" has been the story of my life the last 3 or 4 years. Some I did that to are at .005. Some survived. Let's hope this one is in the latter category GLTA
Thanks for the info (saw it from the PR) but as you already sold why are you responding still? Concern?