I fell into a burning ring of fire
I went down, down, down and the flames went higher
And it burns, burns, burns, the ring of fire
The ring of fire – Johnny Cash, Ring of Fire
I wonder if A is the result of B? Company emphasizes that is not pulling out. It may be running out of money. Smelters cost a lot of money to build. Mines cost a lot of money to build. Transportation access costs a lot of money to build. The project is going to use up a lot of money. Share prices are low. Investors? Hmmm.
The question that needs to be asked is just how much is chromium worth on the market right now and what kind of a return is the company looking at? The price looks like it has been fairly level for a few years. Just under $3/kg. Is that a lot? I don’t know.
The company may sit on the project for years. Is this the economic savior of Thunder Bay? I would not bet the farm on it. Or city either.