News

November 06, 2008

Riding Out The Downturn: Mount Burgess Takes A Realistic Look At The Zinc Market

By Our Man in Oz

Minor British royals, especially those living in dignified poverty, might warm to the Australian mineral explorer Nigel Forrester, managing director of Mt Burgess Mining. They share much in common. Like the royals, Forrester has a well-developed stiffness in the upper lip, no matter how tough the going. He is also confident of eventual victory in the face of adversity, and he exudes an air of Churchillian confidence. Followers of Forrester and have never stopped admiring his determined hunt for the discovery that will make them all rich. And even though this latest stock and commodity market crash has pushed the clock back to pre-boom times for everyone, it has also had the effect of bringing out the best in people and companies determined to survive.

“We’ve learned to scavenge, and survive for better times,” says Forrester. He certainly has, though right now is about as tough as it gets with capital markets closed and Mount Burgess selling assets to pay its bills. Last month the company sold royalty rights to the Red October gold deposit and surrounding tenements in central Western Australia, pulling in a much-needed A$500,000. Just how much-needed can be judged by the cash position of Mt Burgess as disclosed in its September quarterly...