I believe in the ore body at burnstone plain and simple...As dano said it is far better for a consensus of management failure and I believe that to be the case...After they hit their fault, they were slowly improving their ore grade and oz mined...I think it would have continued to improve if they had the cash to keep it going...the ore grade was commercial still...Faults are everywhere in mines, but they are mere vertical cracks that Great Basin was extremely unlucky to hit at a time where nothing could go wrong...NOTHING goes smooth in miners, especially at the point great basin was at...Hollister has the potential to be major...why else by a plant/mill? For a 2-3 year mine life? Heck no...I would love to hold on to hollister and I actually believe we will...It is in the best interest for ALL parties and I am sure they know this...this is how I look at it
WORST CASE SCENARIO
Burnstone sells for 200 million. At this price Burnstone pays off its own 175 million debt and sale expenses. Hollister will still be holding all dip/legal/administrative fees and its own debt. Hollister would not be able to support the company and would be sold off.
NEXT CASE(S)
Burnstone sells for 300 million. At this price Burnstone could pay off its own debt and sale expenses as well as dip/legal/administrative. This leaves Hollister supporting its own debt which it could do, but we would still be vulnerable
Burnstone sells for 400 million. At this price Burnstone pays off all of its own debt, sale expenses, dip/legal/administrative fees. This leaves Hollister with its own debt, but with close to .50 cents a share balance sheet. Hollister could support itself.
Burnstone sells for 500 million. At this price almost all liabilities are covered and Hollister is cash flow positive.
Burnstone sells for 600 million. All liabilities with cash on balance sheet. Hollister cranks.
Anything over is gravy
again this is a Business Rescue Plan, not a fire sale lets get out and move on deal. It is in everyones best interest to hold onto hollister and with the recent reports it seems first priority is to sell burnstone then put together the rescue plan for GBG's future. There is no mention of hollister in the recent reports, just the sale of burnstone.
My guess is we push a billion on the sale of Burnstone using the metric I used on my post regarding the chinese. Gold Ones 4 million proven probable was also between two mines, not one.
AI
