IKN

Win us with honest trifles

Artemis (ARTG.v) doesn’t have the same “great relationship” with Ausenco as Argonaut Gold (AR.to)

Because Argonaut caved in and took the cost hikes onto its own books, they got to tell the world about their “great relationship” with contractors Ausenco on the day they also announced their eye-watering capex blowout for Magino. But instead of that weak excuse, it seems Artemis decided to push back on Ausenco’s “we wanna new deal” calls for Blackwater and, at some point in the talks, must have insisted that the term “EPC” actually means something. So, what happens when you ask Ausenco to make good on its word as a honest business entity?

VANCOUVER, BC, Dec. 30, 2021 /CNW/ – Artemis Gold Inc. (TSXV: ARTG) (“Artemis” or the “Company”) announces that its memorandum of understanding (“MOU”) with Ausenco Engineering Canada Inc. (“Ausenco”) has been terminated due to the expiry of an agreed period to enter into an Engineering, Procurement and Construction (“EPC”) contract to construct a processing facility and associated infrastructure (the “Facilities”) for the Company’s Blackwater Gold Project (“Blackwater” or the “Project”) in Central British Columbia.

The MOU was executed in March 2021 as part of a multi-party competitive bid process and was awarded to Ausenco at that time.

Full NR here. From what this desk has heard out of Canada recently, getting rid of third party contractors and hiring your own team is the best way forward to keep costs under control in these inflationary times. What’s clear is that Ausenco didn’t want to lose its fat margin and preferred to welch on its deal, which should be a lesson for all. As for Artemis, they’re likely expand its own payroll from here and go it alone, or perhaps there are still third party players who know how to do business correctly. Ausenco are getting a rep for moneygrabbers quicktime and are best avoided.

3 Comments

    It’s easy to be the low bidder when you reneg on your agreements later if the costs blow up.

    About what percentage of companies use Ausenco in the construction process?

    Reply

      Dunno. Some feedback today suggests Ausenco may be in too many projects and looking to drop a few, but it’s anecodotal-only

      Reply

    JDS did the FS for Argonaut so not like Ausenco (and the other bidders) had a lot to work wjth at the bidding stage

    Reply

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