Re: there will be a mine and it's going to be (a few thousanths) mine
posted on
Apr 05, 2009 01:07PM
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I have been in the camp - often dismissed here - that better safe than sorry in this environment is the way to go. A mine is soooo way beyond Tyhee's current financial resources that accelerated drilling (with commensurate accelerated spending) might (or maybe probably will) result in shutting the company down. Definitely not worth the risk with no debt and a couple of years worth of minimal operating expenses in cash during the biggest credit crisis in 80 years.
Tyhee already has significant ounces with relatively cheap geological proof of feasibility and permitting still to be done. I think Webb proceeding cautiously while awaiting credit to ease or POG to fly (or both) is prudent. No one knows what is going to happen. Player made a great bearish 880 call a while ago and followed up with a bad bullish "I'm buying" call last weekend. If Webb makes big bets and is also wrong only once that might be the end of it for TDC. I'm on board with extreme caution. This isn't your run of the mill credit shortage.
Strike