It “has no revenues from operations and does not expect to generate any revenues from operations in the foreseeable future,” and “the funds for the planned activities in 2009 and 2010 are expected to be raised from additional debt and equity financings.” It is currently living entirely on borrowed money. As of September 2009, it had only $14 Million in cash on hand and total liabilities of $40 Million, and recently raised $32.5 Million in an offering of common stock to fund its operations.
NOTE: Rio Tinto and BHP are huge companies with their own funds to develop the Resolution mine. Augusta has only borrowed funds and the interest payments will add millions of dollars to their capital costs and their copper per lb. much more expensive.
Meanwhile, Augusta has taken advantage of Arizona’s pro-mining water law to start drilling wells just south of Tucson that will very likely deprive thousands of residents and the City of Tucson of water for basic living purposes. Augusta will be able to pump 6,000 acre-feet of water a year, that’s 2 Billion gallons a year — worth about $5 Billion dollars when sold a gallon at a time to thirsty Arizonans. Augusta’s wells will deprive us of that water and provide nothing like a fair return on its value. Supposedly, Augusta will “recharge” the wells with CAP water, but what guarantee is there that it will ever perform this promise?
With 70% debt financing, if Augusta can’t meet its obligations, there is a great risk it will simply melt away, leaving Tucson poorer in copper, water, and quality of life. If Augusta is serious about pursuing this project, it should be required to post a performance bond for the entire cost of remediating all of the environmental damage, water use, and transportation expense that it will bring to the area. But where could they borrow that kind of money?
Exxon, BP, GE, all those non polluters?
You call these guys non polluters? Get real! All are responsible for creating massive pollution problems.
Augusta has no mining experience and
Exxon Valdez oil spill was the result of carelessness and resulted in 260,000 to 750,000 barrels (41,000 to 119,000 m3) of crude oil being leaked.
BP is responsible for the Gulf oil leak that destroyed the fish and shellfish industry there for years.
GE has polluted the Hudson River for years.
http://www.nytimes.com/1999/11/16/nyregion/state-sues-ge-over-pollution-in-the-hudson.html?pagewanted=all
http://www.nrdc.org/water/pollution/hhudson.asp
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