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Allied Nevada’s strategy is to utilize
our highly experienced management, technical and geologic expertise to expand existing discoveries in our asset
portfolio and, where feasible, to develop these properties
into producing mines or significant royalty
streams.
Initially, we will focus our energy on
the reopening of the Hycroft Oxide Mine, the expansion of
existing oxide resources, and the evaluation of the deeper
sulfide and high-grade potential at the Hycroft Mine. The
drilling program at the Hycroft property is designed to
evaluate previously identified targets with the potential of
adding to current mineral reserves and resources.
Reactivation activities are underway, and production is scheduled to resume in
the fourth quarter of 2008.
Until Allied Nevada begins generating
sufficient cash flow from its own gold production and
production royalties, we will be dependent on our present
cash balance, potential funding from external sources and
cash flow from AMR (advanced minimum royalty) payments.
These AMR payments are expected to be approximately $40
million in 2008. We will regularly review all of our
property interests, and joint venture relationships with the
goal of establishing the best approach to bring value to our
portfolio of property interests and other assets. |
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