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The exact communique: "In relation to your question - if a new processing plant is required it will be built to serve the prospective site at Teren-Sai in the future after an assessement is made once production commences."
Hopefully that puts an end to this nonsense!
PS: The question was.."Where is the new processing plant going to be built?"
Stonefold, that's very good thinking. Take the mountain to Mohammad!
But no, the new processing plant will be located at.....(under the current plan)
Will they build one new plant but put it on roller skates so they can wheel it between Seki and TS?
As Spike wisely pointed out, it's all a bit academic where they build the next processing plant. The most important thing is that they are seen to have a workable plan...namely to upgrade Sekisovkoye from 850ktpa to 1Mtpa over the next 3 years and then commence construction of the new plant at....
Are they going to cover east Kaz with hundreds of processing plants?
Got an answer from the company....took some time as I was warned it would.
Drum roll....and the answer is....
"It is all a bit academic though - I think we’ll be delighted here when Altyn can fully utilize the existing 850ktpa plant that they have."
===============================================
Spike , of course you are correct. Ther most important thing is that they get Sekisovkoye working at 850Ktpa and upgraded to 1Mtpa.
But a third processing plant is a big investment and requires a huge management committment in time & resources. Blandly suggesting that additional facilities are in the 'plan' doesn't help investors understand the company (IMO). Altyn need to crawl before they even start walking...some are looking at record breaking marathon times!!
The company isn't helping with ambiguous communications.
Stonefold, thanks for the Altyn contact information. I shall ask the question that people seem wary to ask!!
The email seems a little odd, dated that is. The company is now Altyngold but the email is 'info@altyn.uk'. I shall give it a try anyway.
Spike, as you say academic in the scheme of things but they confirmed in the televised presentation last week Seki was planned to go to 2mtpa, and life of mine would be maintained by increase in reserves to be confirmed by new CPR following extensive drilling since 2019.
As I said before I tend to side with bald_eagle on this one that the company has current defined plans for two plants each of 1MTPA and the location of the second plant has been shifted from Sekisovkoye to Teren-Sai. Which isn’t to say longer term they can’t / won’t increase that to three plants with a second at Sekisovskoye but I don’t yet see that on the current roadmap despite what the previous CPR and previous results say.
It is all a bit academic though - I think we’ll be delighted here when Altyn can fully utilize the existing 850ktpa plant that they have.
bald_eagle,
The email address (with two gaps removed)
info @ altyn.uk
still works.
They will respond to an answerable question, but it can take a long time before you get a reply.
I have not asked them this, but my interpretation is that they aim to increase the processing plant at Seki to 1mt.
Then build a new 1mt plant at Seki.
Later to build new 1mt plant at TS.
"You can always get in touch with Gallagher or Basra for confirmation, I have direct contact with both."
============================================
DofM, why don't you ask Gallagher & Basra to clear things up once and for all?....and post their answer(s) on here. It would certainly end this misunderstanding and provide useful information to investors.
PS I don't have the contact details of either men....the website is bereft of email addresses (or other contact information useful to me).
From the latest presentation document (14 sep 2021):
Page 5 (Credit highlights).... "Reserves & resources JORC: 5.3Moz in reserves (2P)...reserves support 30+ years mine life at targetted 100Koz annual production"
page 10 (Sekisovkoye deposit overview)...."3.8Moz 2P gold reserves"
page 11 (Teren-sai deposit overview)...."1.45Moz 2P gold reserves"
Conclusion: When the company talks about mine reserves of 5.3Moz and annual production target of 100Koz per year it is talking about the combined output of Sekisovkoye AND Teren-sai.
PS: 100Koz per year is equivalent to TWO 1Mtpa processing plants....assuming grades of 2g/t and 80% recovery.
PPS: Do the math, see the light!
Its never going to drop in baldies head as he s got nought in there . Maybe he should have been called Bungalow !
Baldie why don t you join the board of directors as you talk a load of cobblers and learn to read properly ?
Its never going to drop in baldies head as he s got nought in there . Maybe he should have been called Bungalow !
From the presentation document (14 sep 2021):
"Longer term production goal - 2Mtpa" (pp5)
"There will be 3 plants, two at Seki at 1mtpa each and one at Teren Sai, size yet to be announced."
============================================================================
Where in the latest presentation document does it say that 3 processing plants are to be built and/or the long term goal is 3Mtpa?
This is incorrect and based on a misreading of the April financial report....which to be fair was slightly ambiguous. The latest presentation document is much clearer IMO....upgrade current plant to 1Mtpa and build a brand new plant - most likely IMO at Ternen-sai - to reach a long term goal of 2Mtpa.
There is no mention of a 3rd processing plant.
From the 2020 accounts released in April this year:
The long term plan still consists in operating the Sekisovskoye Mine at 850kt annual capacity for three years then ramping up production to 2Mtpa over a six year period. The initial target is an important milestone and with the purchase of the new equipment this is now progressing as planned. The longer term plan involves obtaining further funding and the Board is constantly looking at the best way to finance the business going forward. In this regard, the Company has recently appointed Renaissance Capital to operate as a Corporate Broker as well as produce independent research on the Company in order to increase its profile with potential investors. In order to achieve the longer term goal outlined, the Company has estimated that it will require an initial funding of US$40m-US$50m to attain 1Mpta target. Further funding will be required for the secondary 2Mpta target.
Mining operations at Teren- Sai are planned to run in parallel to Sekisovskoye development and will initially include surface mining at Area No.2 before moving underground at a later stage. It is envisaged that at the initial costs of open pit operations can be kept low by making use of the existing equipment as far as possible. The significant expenditure relates to the planned Teren-Sai processing plant which will be a conventional carbon-in-leach (“CIL”) gold recovery plant, similar to the existing one at the neighbouring Sekisovskoye Mine.
There will be 3 plants, two at Seki at 1mtpa each and one at Teren Sai, size yet to be announced. Hopefully the penny will drop soon......
The question isn't really about where they are building the second plant....it could be either Teren-sai or Sekisovkoye, I don't care. The problem is some people are extraploating the mixed messages from the company into a long term plan for three 1Mtpa processing plants. I cannot see any plan to reach 3Mtpa.....even one new 1Mtpa plant will be hugely expensive and time consuming to plan & build. They can build it where they like. But don't pretend there is a third plant planned based on a misreading of previous ambiguous company reports (2014 was a joke). The latest company presentation document is perfectly clear IMO.
The 'problem' is that some people think they are never wrong....me, I'm more than happy to be proven wrong because it means I have learned something new. But I rarely am wrong!!!
No, this is from the 2019 CPR:
"The Sekisovskoye LoM shows a considerable ramp up from current production levels to the
anticipated target of 2Mtpa RoM production. RoM production is planned to be ramped up to 1Mtpa
using the upgraded processing plant, with a further ramp up to 2Mtpa RoM requiring an additional
processing plant.
The ramp up will require commissioning of a rock hoisting shaft and associated cage and
ventilation shafts and skip and ventilation shafts planned to follow. Initial ramp up production will
be achieved using the two transport declines. Production in these years will be from two levels
above +100masl, with planned hauling distance for the ore through the two transport declines
being 2.0-2.2km. Ten trips per truck per shift have be scheduled for each of the seven trucks
dedicated to the two production levels, to achieve a daily production of 3.36ktpa"
Teren Sai is on top of this .
It will all become clear to you in due course! You can always get in touch with Gallagher or Basra for confirmation, I have direct contact with both.
I tend to side with Bald_Eagle on this - I believe the intention has always been 2MTPA of processing, originally both at Sekisovskoye with material trucked in from Teren-Sai, but I think recently they have decided to switch the location of the second plant over to Teren-Sai, which has caused the confusion.
"A small incremental processing plant expansion is planned to be completed by 2018, which will increase throughput from 0.85Mtpa to 1Mtpa."
=====================================================================
Quoting reports from 2014 made me laugh. The company making promises that it couldn't keep even back then....even the 'small incremental processing plant expansion' is delightfully naive. Thanks for putting a smile on my face.
A poster on another forum confirmed your misconception....another gem!!
You are confusing the company target - Sekisovkoye plus Teren-sai - of 2Mtpa with the individual target for Sekisovkoye (IMO). I thought the latest presentation document was perfectly clear.
http://145908.selcdn.ru/files.altyn.uk/2014/CPR_Announcement.pdf
Baldy, ramp up to 2mtpa been planned since 2014.........
Hey Baldy, here it is, in the Company's own words:
"The plan consists in operating the Sekisovskoye Mine at 850kt annual capacity for three years then ramping up production to 2Mtpa over a six year period. This will be achieved by increasing the capacity of the existing processing plant to 1Mtpa from 0.85Mtpa for US$8.4m and constructing a new 1Mtpa metallurgical plant and tailings dumps for US$45.7m. The 2Mtpa production level is planned to be achieved with the development of vertical skip, cage and ventilation shafts down to the -430masl level. As such, while the mine is being currently accessed via two declines, a capital expenditure ("Capex") of US$204m is planned for the Life of mine underground expansion in order to develop a new vertical skip, cage and ventilation shafts as well as the associated infrastructure".
Look at the Advfn board. A poster there has confirmed Seki plans for 2mtpa having also watched the Presentation. Teren Sai is on top of that. They haven't disclosed the plant capacity at TS yet.