Production is in 2015.

There is plenty of potential here. However, it is still 2 years away from production. This is more of a buy and "wait" story now.

Sure there could be a surprise takeover BUT if there were suitors wouldn't it be wise to acquire prior to a huge financing.

What are you investing in this company for at the current time?

To get in before the institutional investors increase the share price?


RW: So the initial CAPEX of Morelos is $552 million. How much cash do you have after the financing?

FS: About $420 million, but we’ll spend about $650 million on the project itself before we’re cashflow positive. So we’ll need $650 million and probably about $60 million set aside beyond that to carry forward the exploration program.

RW: Will you need to go back for more capital before you begin production in 2015?

FS: Yes, but the plan isn’t to go to equity. We’re talking to 10 banks as we speak for debt, and that will range somewhere between $300 and $350 million. Those discussions are ongoing, and we hope to have the termsheet finalized by the end of November. Then the banks’ due diligence would start, and we hope to have that process completed sometime around April.