1. Management's insincerity in wanting to go to production alone. I feel their decisions reflect those of a group of people who are spending tens of thousands of dollars on renovating their bathroom in preparation for selling their house. A good idea if you are selling, but if the housing market crashes then you are left with a nice bathroom and no cash. (feel familiar?)
2. Digging to china instead of bringing the shallower HG gold to the surface to be milled and sold to finance further development. Actions speak louder than words. This decision only proves point one above.
3. There has been no buyout because the majors are hurting due to low gold price and a variety of major projects being cancelled due to political risk. Most majors can't make a profit with gold below $1300 and they are bleeding cash. Their shareholders would not be impressed with further purchases. If anything, the majors are in the process of selling projects off.
4. On the macro scale, the fed's printing press for the world's currency and unrestrained access to a humungous paper market in gold are factors that have been underestimated as cappers of gold's price, by investors and management.
Ask yourself, if management is sincere about mining, why aren't they? They have $70mil cash, permits, electricity, a mill, a tailings pond, a cryderman mucker and a nice new hoist but they keep giving investors the shaft.
There needs to be a big change in thinking at the top to turn this company around. Every month they dither and faff-about is another step in the wrong direction. Who cares about railcarts vs. electric loaders, longhole-vs. crown and pillar? They need to MINE. NOW.
Nic Niko was issued 400,000 options on Oct. 9th at $1.28
Let's hope they provide some source of motivation. Right now he's underwater, or is that the shaft refilling with water that I hear? Not sure if water is dripping off the tarp that Dave tossed on top of the SAG and ball mill before he hopped on his plane to Vancouver. It's going to cause a delay if the have de-water the shaft again.