Tanami Gold is developing Coyote Mine, an underground gold mine in the Tanami Desert in Western Australia, close to the Northern Territory border. I saw the mine from my Sydney - Bali flight, and thought I would challenge myself to locate it and identify it. With the help of GE I managed to find it in the vastness of the Australian interior. It is located about 13 kms from the WA/NT border, 19 52S 128 55E.
As a result of the global downturn, Tanami Gold have faced a $7.7m bailout, as Alison Bevege reports in Northern Territory News 26.9.2008:
TANAMI Gold has taken an emergency loan to keep its Coyote gold mine running.
There are fears the company, which employs 70 full-time staff, could fall victim to the credit crunch.
The company needs the money to pay for the ongoing expansion of the underground section of the mine, 13km from the NT border in WA.
It is digging down to high-grade ore of up to 1117g/tonne, but executive chairman Denis Waddell said the costs of materials and labour had increased while delivery times had lengthened.
"As the cost base has risen significantly, we've been impacted by that,'' he said......
Site issues including a delay in the development of the decline reaching down to the high grade ore have hurt cash flow.
The company announced last week an agreement to take short-term unsecured loans worth $HK49.5 millon, ($A7.7 million) from Chinese financier AP Finance Limited, so it could reach the high-grade ore and become "cash-flow positive''.
But due to the credit crunch it is difficult to borrow, especially unsecured funds, and the terms are steep.....
To raise a further $11.79 million in funds, Tanami has turned to shareholders with an entitlements issue.
Funds raised would repay loans at Coyote.
Hi Ian Fascinating.
This credit crunch has hit hard, everywhere.
Amazing photo - it looks at first glance like something floating in water. I am bowled over that you managed to track it down in the middle of nowhere - GOOD FOR YOU!!!!
Thanks for sharing in my little joy. "Eureka", I cried when I found it!
I was talking to a Korean-Australian business man a month ago, and he told me his pastor had asked him to teach the small children at Sunday School, and he was so surprised how much he was learning.
So, I continued the conversation by asking what it was that he was learning. "O I'm learning the simplicity of faith. Before he said everything had to be worked at so hard. But since the credit crisis, I've been learning so much. Life is much simpler than I thought. And trust is no longer the same as risk."
"O?" I inquired. He continued, "I was the first to lose my job when the crisis began. I have lost everything. Job, house, car... I was a credit importer-exporter!"
I guess you actually don't own much when you are simply swapping credit around from one country to another!
Ian - Interesting phrase, that: Trust is no longer the same as risk.." -- I would never have equated them.
Something to ponder over when I sit by the fire cuddled under a kaross with my billycan simmering and the crickets nibble my sandalled toes...
Now you have me meditating too, Hazel. Trust and risk seem synonyms and antinyms, simultaneously. Does it depend on whether the trust of risk is in one's own capacity, and the risk of trust is anchored beyond one's own sufficiency?
And I am pleased that bush camping delights and liberates you too. As long as my camera is with me.
And, by the way, when a Seth African writes to me about nibbling on tomato salads at the cricket, I presume that is the view from the Members Stand? Or is my hearing deficiency playing tricks on me again. O well age catches up with us all eventually. :0)
Ian - I guess you are right: my trust of risk capacity has never been very high! (and I've found over the years that the risk of trust is often sadly anchored way beyond.)
Now don't talk about Cricket-Cricket - it's a very sensitive subject in the Coetzee ménage at the moment (a pox on a certain team from down under - no names mentioned)...
It aint yer hearing deficiency you need to worry about Mr Stehbens - it's yer optical one that's on the fritz again!!! Sandals / Salads / Sandals / Salads.. (aside: how on earth did tomatoes arrive in this discussion?? mutter mutter)
Oh, and also don't talk about "Age catching up" right now - that's also a very sensitive subject in the Coetzee ménage with a certain person's birthday looming...
Cheers from Hazey (dodging tomatoes)
I won't being tossing any tomatoes, dear Hazel, not this week at least. It seems tomorrow might be distressing enough in the Coetzee household, unless miracles happen and then I will honour your joy and rejoice with you.
By the way what was that you said about "ma toes"? I didn't hear you. Have a very happy birthday, Hazel. It is something to look forward to. Does sensitive mean a big 0!? Then put the pastels aside for a day or so and go out and paint the town RED.
Happy Birthday. A bunch of Proteas for your birthday!
Ian Yes sensitive does mean one of the big "O's" at the end of March - for I've decided to stop on 30 (again)!! I must be one of the only 2009 30-year olds to remember childhood heroes & heroines in all those wonderful musicals: Gene Kelly, Donald O'Connor, Debbie Reynolds and Jane Powell, Kathryn Grayson, Gordon Macrea, Shirley Jones, Howard Keel, Mario Lanza, how far would you like me to go on rambling...?
Thank you so much in anticipation for your very kind wishes. Much appreciated. I'll get a bunch of proteas, pop them in a copper jug and think of you. (o;
Warm greetings, Hazel
Dear o dear, Hazel,
If your cryptic message is clear you are about to celebrate the big 30 for the second round! Now that is cause for a big celebration, with a big bunch of proteas! Happy birthday, Hazel
Now how about you blow all those candles out in one big, very big, breath!
I remember Debbie Reynolds and Tammy's my love, too. No wonder you are a romantic with all the love songs of that bygone era running around in your head. You probably didn't enjoy the next era of wooden hearts and broken hearts, quite so much, as the era when relationships all made good!
You are entering your golden years truly. The best is yet to come.
I hope so.
Ah yes I remember it well - I think
Mantonvani and Moira Shearer
The Great Caruso,
Dick Barton Special Agent, and the Navy Lark,
Doris Day singing Secret Love,
I hear the cotton woods whisp'rin above
But I'm so confused with tomato nibblets, and crickets on the hearth, and isn't Cozy Toes a brand name for a foot muff ....
Now - where did I put my glasses?
They're on your head as usual dear
And I just knew there was something else ... very nice aerial photo Ian, and what's just as good is the fact that you managed to locate it as well. I notice Hazel mentioned that in the same sentence as cricket - I'm stumped - and I bet she didn't even bat an eyelid. Is there no boundary to these conversations? So now I must run before I get caught out playing games on Pano :)
Dear Tammy, Amelia and Hazel,
Retirement has at last arrived. So I've pulled up the stumps and headed into the pavilion for a while. So if you keep the puns, banter and commentaries flowing I will keep applauding. I look forward to your next innings.
Update to Tanami Gold comment:From a Tanami Gold share holder.
The 11.7 rights issue, was a success, Tanami Gold are expected to announce that they are cash flow positive with the 1/4 report due any time now (29 April 09), the last 1/4 report indicated that this would probably be the case.
The loan (made by the major share holder) is expected to be paid out shortly there after.
The gold bearing ore reserve amount has increased with depth.
New mining meteods reduced dilution.
Costs were reduced a lot, production increased with a new owner operator work force, and company CEO who is a miner with experience was appointed.
Tanami have bucked the trend with the share market price dive, some of my shares were up 700% so far in two months, and I believe that they have a lot lot further to go.
Tanami have turned the corner.
There are several high grade drill holes (ore reserves) also in trucking dist to the processing plant, that can be developed with the profit from a cash flow positive operation, the Bommi load returned higher grade drill samples than Coyote, the company has 17,000km + exploration area to also explore.
If you don't already have shares get in quick! TAM
Plus the there is a 160,000,000 tax credit from previous development cost.
The comany has not hedged the gold price, so can sell on the spot market.
The company essentially has no debt compared to other Gold companies.
Regards Mark H
Thanks for adding such significant comment to this file, Mark. I find you your knowledge quite remarkable.
Thanks for your introduction, Dr Brianna. I trust that you are successful in your career of caring for people. We welcome you to join our discussions but also I hope you enjoy our photography.
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Photo taken in Tanami WA 6770, Australia
Misplaced? Suggest new location