Quote:
Originally Posted by FakeNameChanged
Thanks for posting that. I've read one of their quarterly reports previously. Mining is so complex and capital intensive, I'm amazed that any of them can make a profit doing it. I grew up near iron-ore mines, where many of my relatives worked, and iron is easier to mine than precious metals.
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the deal with mining is that there is only so much open pit mining. after that it gets tough. sometimes you have to dig a mile down and you don't know what you are going to get. they do geological studies to try to raise the probabilities. so when they start on a property, they build the mine and keep on exploring to see if they can find something else.
McEwen did a rotten job and overpaid for their 2 newest properties, Gold Bar and Black Fox. Black Fox looks like its going to be alright because their expenses have been coming in low now due to the weak dollar.
