amazing they always drop RNS's at 8am...must be a Tananzian quirk ? "successful and constructive discussion with Tanzanian Government stakeholders over the past week is a further major step forward in the development of the RCPP" It doesn't say much, but guess they thought worth putting out an RNS, given "all the shorts out there"... http://uk.advfn.com/news/UKREG/2014/article/63837172?xref=newsalerttweet&adw=1126416
Agreement reached on terms of reference for development of Power Purchase Agreement ("PPA") and Grid
Connection Agreement ("GCA");
Agreement reached on initial heads of terms for Coal Sale Agreement ("CSA"); and
Detailed financial modelling of Rukwa Coal Mine commences
RE: Gold project
H5Oh ! I'm afraid you have forgotten all those other costs, including of raising, paying back, and servicing the funding. SHG is already funded (for its present output). PI's always make the mistake of grossly simplifying the figures. The only way to value any project is to wait for at least a feasibility study which will give you a first estimate of capital cost and subsequent cash inflow (net of all those other costs) to give a present value (discounting all future revenues at someappropriate interest rate) . Even when that is done, the market won't give you any recognition. Currently, even projects (more correctly, the company owning the project) with funding nearly secured are being valued at best at 1/3rd the 'theoretical' value.Value will only start to approach theory once earnings are almost in the bag. That is still a long way away for the likes of Kibo. Ergo ! - best to hope for a trade purchase of the assets
25 Sep '14
RE: Gold project
Today's results statement confirms my appraisal that production would be far more beneficial to shareholders. I have compared my recent research to Shanta Gold's numbers that were published on 21st July. These suggest that my numbers are pretty much in-line with reality. To recall..... Costs 900oz v gold price $1225 on 30,000 annual production = annual operating profit of $9,750,000 (£6m) Whilst production and positive cash-flow may be a little way down the road the market will soon have to factor it in. I stand by my estimation that Kibo could soon be selling on a PE of 5 or 15p per share
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