And planning to invest heavily. http://allafrica.com/stories/201407251277.html?viewall=1
Errr, all of these studies are being prepared for inclusion in the DFS! Don't expect to learn much about them until then. This nonsense about 'scaling back' is a red herring. Given the large CAPEX requirements of large mines it makes complete sense to consider all options. One option is to expand the mine in stages, using revenue to build capacity, and thus keep initial CAPEX at more affordable levels. The BOD is doing exactly the right thing to keep all options open.
Some posters appreciate balance. Sweep aside the theories about MM manipulation shorters etc etc share price performance reflects the market view on the risks facing this development and how they are being managed. On that score there can be little doubt that BAO is not performing. In March 2013 the PFS demonstrated "compelling economics" with ungeared IRR of 22% and NPV (10) OF $1,261M. Worthy of interest by any Standard (Chartered) who were duly appointed in June 2013. Only four days after this appointment the results of a scaled up 2 mtpa project were unveiled with great fanfare. NPV $2.4 billion IRR 26%. Standard Chartered, through its specialist mining corporate finance division, will assist Baobab to determine and execute its corporate opportunities with relation to the Tete Project. As part of the mandate, Standard Chartered will assess a range of strategic corporate opportunities and financing alternatives to support the successful development of the Tete project. Thirteen months on I am rather more interested to hear details of progress on pulling together a corporate structure and project finance than what is happening with an overdue 45kg smelting test in the USA. Particularly given the manner in which the news of scaling back was let slip.
Lights on soon
Strategic partner might want to lock out opposition before DFS completion especially if contemplating steel production in Mozambique to compete with steel production in South Africa riddled with strikes, power outages etc at present.
Looks like further investment in the Nacala line again: http://allafrica.com/stories/201407251277.html?viewall=1 I have to wonder why the broken records keep commenting here, if you don't like the company and its prospects then sell up.
RE: Lights on soon.
What partner would come in before the DFS is concluded? If you looking at investing a few hundred million I think you could sit tight for 4 months+ to see the real fundamentals or is that too much like common sense? The DFS is the precursor to investment, if we're 12 months down the line post-DFS with no action it would then be the time to raise concern, but by all means continue on with the scare mongering. Yes, not a good idea to buy on a low...buy at 20p-30p when the rampers join the party? 2 year lows, good time to buy no?
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