Tonogold Resources Inc (TNGL)

[joeblow110percent]

Can mining companies survive US$90 IO prices?

“In particular, miners with large iron ore exposure, but are unable to cut costs and are saddled with debt, will face a severe deterioration in earnings and credit metrics,” warned S&P Credit Analysts May Zhong, Diego H. Ocampo, Andrey Nikolaev, Amanda Buckland, Elad Jelasko, and Xavier Jean.”

“…downward rating pressures could arise for Australia’s Atlas Iron Ltd., U.S.-based Cliffs Natural Resources Inc., and South America’s CAP S.A.,” the analysts cautioned.”

“In our view, producers with a break-even cost of higher than US$80 per ton are vulnerable to iron price volatility.”…

http://www.mineweb.com/mineweb/content/en/mineweb-iron-and-steel?oid=246436&sn=Detail


TNGL HAS NO DEBT AND IS INITIATING PLANS TO REDUCE COSTS.