Take physic, pomp

Drop the Pylot

Capstone Mining’s (CS.to) news release has the quote of the day. Bold-type by IKN:

Suspension of Santo Domingo Project
Capstone will discontinue all
work on its Santo Domingo project, and will downsize the Santiago
and Diego de Almagro offices in Chile . The previously communicated
2015 budget of $19.4 million will be reduced by $2.4 million
(including severance costs) on the basis of Capstone’s 70% ownership. In
2016 and beyond, holding and community relations costs are expected to
be in the range of $2 million annually on a 100% basis. Of the 31
employees at Santo Domingo , 23 positions are affected and a one-time
restructuring charge of approximately $3.2 million on a 100% basis
will be expensed in the third quarter.
“While we continue to believe
that Santo Domingo is an excellent project,
a number of factors,
including uncertainty over the future direction of copper prices and our
financing capacity for the project, make capital preservation a
priority at this time,” continued Mr. Pylot. “In this environment, we
believe the most prudent course of action is to put the project and
completion of the updated Feasibility Study on hold, while maintaining
the optionality for future development when conditions improve.”

Hey, y’think the fact that CS.to paid $725m four years ago for a project with marginal economics using $2.85/lb Cu and $85/t Fe has anything to do with the fact Darren Pylot still believes Santo Domingo is an excellent project?
CS.to’s entire market cap is now a third of the price it paid for Santo Domingo. Funny old world.

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