Markets. On the whole, major miners’ all in cost of gold is $1400/oz. Gold is $1325 an ounce so they are not making money. If you stop sustaining your businesses you can bring costs down but then your business goes away. You need to replace every oz of gold you produce or you lose your reserves. He thinks we are now in a peak discovery period. Unless we see a real increase in the gold price he doesn’t see how we make the discoveries to keep up with production.
He bought it because they have a large, low grade copper/nickel deposit in Minnesota. They were expecting to find a high grade feeder, but did not after drilling, so he sold out of it. It is now all about getting the metallurgy to work and it is a complex system. It is advancing and they have a shot.