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Thompson Creek Metals Company Inc. Message Board

  • formercritic formercritic Jul 2, 2013 7:18 PM Flag

    Barrick's Pascua- Lama mine on hold

    Delayed for 2 years due to gold drop.
    If MM is delayed for similar reasons then all bets are off.
    Don't want that to happen but that is the current state in the mining sector.

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    • Suspending completion of construction and commissioning of Mt. Milligan would be the EPITOME OF GALACTIC STUPIDITY, and will not happen. The creditors of the company (including Royal Gold) would prevent it. I can assure you, having spoken to management of Thompson Creek several times on occasion, in the recent past, the management of this Company have NO intention of suspending the completion of this site.

      Only an act of god, or thermonuclear war will prevent it's completion, at this point.

      Gold is merely a by-product of Mt. Milligan, and its presence makes mining of the copper at the site, economic.

      Pascua-Lama has been suspended because of fierce opposition to it's development by local indigenous Andean tribes over water issues, and corrupt Chilean backtracking on environmental permits. There are no serious environmental issues caused by Barrick at the Pascua-Lama site, but a new Chilean gov't is using the pretext to extort Barrick for more economic benefit from the mine. The locals who are up-in-arms claim they were shut out of the permitting decisions and are using litigation to "protect" their rights to water flowing down from the Andean range into their territory. Both parties are merely shaking down Barrick, much like Dominican Republic authorties did recently on the just completed Pueblo Viejo gold mine, located in that country.

      Furthermore, Barrick has racked up a lot of debt for some ill-timed, questionable acquisitions in the past 4-5 years and is pulling back it's capital spending ambitions to better manage cashflow. A company with $14.5 billion dollars in debt, and now-restricted access to credit markets, tend to do that. Suspending operations at Pascau-Lama is a shot-across-the-bow to the gov't of Chile to straighten their shyte out or else, and who most likely will get the message whether they pick up the phone or not.

      Do not draw inferences from the problems of Barrick to the tasks ahead for Thompson Creek. That is just silly paranoia.

      Sentiment: Strong Buy

    • hint----TC is not merely a "gold company" as you say. hope this helps.

    • less supply is good

      Sentiment: Hold

    • I don't think it was just because of the gold drop. Wasn't there some serious environmental concerns? Also, I believe this was strictly a gold mine? TC is not!