Mexican Mining

[coach247]

There is no arguing the value of that high grade ore they are shipping. My issue with EXN is based on the fact they only own half of that mine, and that the test mining will be very expensive for them when the trucking costs and recovery process, and smelter fees are built in. The $5 million loan at 20% will just add another layer of costs that will burn the operating profits. They are already on the hook for a convertable debenture that values the silver as forward sold in the $5 range. My opinion is that it is a great project but EXN did not have the resources to do this deal and much of the gravey will go to the hands of the financers and not enough into generating returns for shareholders. It will take a very patient group of shareholders to wait around while everyone else is paid off in front of them, before any real earnings will start to accrue. Long term, I have no doubt that it is a fantastic property that will be developed into a very good mine.

cheers!

COACH247