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then 70 million is there than haha... i think personial toby bradbury will move it quicker. 1 year less depending on situation. duck pond mill will do want for us cornish? will i feeder also increase ?
Duck pond is likely to cost around $25 - $30 million over 3 years - can you see my point you don't need $30 million up front, you are looking at costs of around a million dollars a month. To begin with, the physical mill structure will need to be built at Ming - I would anticipate tgat this would all be new, you will then have staff at duck pond disassembling and at ming reassembling, along with fitters and electricians rewiring and installing pipewirk
well i am staying open minded because covid or situlation we are all in anything can happen at anytime.. and this duck pond mill. want does it do to full exspend please explain
No its not $24 million, San Rafaels plant is designed for a throughput of 3800tpd, ours is being designed for 1850tpd, which is why I am estimating $15 million.
Like every mine there is a need for sustaining capital, which is likely to be in the region of $300 million over the next 20 years. But the idea is to get to a point where the capital is provided by operating cashflows, which should occur in q4 this year.
Now we talking 24 million more like it that my point they say short but looking at point that toby bradbury could profit get more to benefit rmm. Long term .. so my 70 million not far off .. if 24 for ore sorting then well. Close that total ming mine for full upgrade in future future not now could come together 70 million in the years to come
The economics were different there, for us the payback period is about 18 - 24 months which is still respectable
Minsur’s San Rafael tin operation in Peru repaid the $24 million capital cost that came with buying a TOMRA 3,000 t/d XRT ore sorter within four months of installation.
They can just buy it with a load and pay it back. Easy
I am anticipating between now and September we will spend around $5 million on it, with tge remainder over the following 6 months
No its going to cost around $15 million. You don't write a cheque for an ore sorter and it turns up, you plug it in and turn it on.
It's ultimately a major EPC contract, with either milestones or monthly valuations, which in rge main will be funded from operating cashflows, but there is a gap that needs plugging.
U think ore sorting machine is gonna cost 2 million plus paying for worker and size. Not joking but some people are not realistic the size of ore sorting machine big not small.
That was in the projections and plans already
Dont forget at 31 March we still had $8M in cash (6 in bank plus the 2 from assets sale received April)
And we are generating .75M each week from sales (which would alos have been in the cashflow for the money)
The issue was that the delay for say (not recieving the funding until mid Feb) could well have been that the cash flow suggested receiving it 4 weeks earlier - so the only shortfall is purely the cash burn before funding was received
ie, the plan from day 0 after funding is received is the same, its just you have less in bank at day 0 of your cashflow because youve burned some more waiting
This is why I believe the talk of short of cash etc is completely over played and that 1 person selling such a significant volume at 20% discount to ask has created this drop, which has then further triggered a sell off
No issues with anybody doing what they do to make money and the fundamentals here are so strong it only matters if you sell and cant hold for your target exit
GLA and DYOR guys (dont follow others)
Yes and tgats why we are going to be short of cash, in terms of cash in the bank we are fine, but we don't have what is needed to bring ore sorting on line for 2022.
Do we not need to invest in building the ore sorting facility in the coming months?
My estimates say $5M approx - this is short term cashflow and Capital part for speeding up output
TB will not have achieved what they have with the $10M raised and carrying on with other capital developments if the initial 10M was way too short - and the debt swap would not have happened either
Most of this cash could be covered with an overdraft facility - and part in a 12mth loan with capital repayment holiday
Cornish has estimated that sales are circa $100k per day, and ramping up all the time
The hedge at $7700 was a great deal and they will want to speed up getting more out of the ground to fulfill that and then take advantage of a future deal
RMM is still on course to make a profit by end of year - a simple cashflow statement says that cash from profits will be short to cover the capital expenditure in year
One thing I am sure of, is that TB will be under promising and over delivering in 2021 and 2022 as you are only as good as your last performance - and that for TB is delivering a successful 2021
GLA and relax, and ignore the trolls - not replying to them cuts off their oxygen
yea I totally agree 70 million in years to come now am saying 10 or less depends. but want I can see toby could really push thing more be interesting to see want shape and form.. my feeling is he use copper price to benefit rmm long term allow him upgrade it more in whatever way possible. next year beyond.. news is coming buy or sell at 1
They raised 10 million dollars with the last fund raise so it would be very strange if they now needed another 70 million. It's one thing to be a bit short of cash because you are a few weeks behind with producing enough copper to meet your hedge requirements meaning you might therefore fall below your guidance for the year, quite another to have only raised 12% of what you need last time around. Clearly none of us knows how much is needed but logic tells me it's nowhere near 70 mil. That amount might end up being spent on Ming over the next few years but in that time they will have become self funding through unhedged sales at (hopefully) $4-$5lb.
that my point upgrade Ming Mine benefit from that. its their money maker. I think rmm could benefit do work even quicker. once situation changes. that my point u think logical I think if I kwn the copper price is stupid high I get more fund to do up mine even quicker.. Toby Bradbury sanasta gold did that. they had 70 million in debt now they have 1 million they up and running well
Absolutely Cornish knocker totally agree there. Focus on upgrade Ming and get an earn in commitment so that LD can be progressed with expenditure commitments from the JV partner etc
Tgats why I believe the way forward is an earn in agreement on little deer, let someone else pay for the next 2 years work on it, by which time we will have large excess cashflow from ming to bring little deer to production in 2025.
maybe my dyslexic little dear not happening now. I kwn that... yes I agree 5 to 10 million I expected that aswell. my thinking is ore sorting machine exsptive the works drilling now now making new fan air flow so on plus duck pond mill. don't mean 70 million now lol. I mean in total in the future future
No, not at all, little deer and ming mine bear no relation to each other. Ming Mine is an operating mine in tge process of considerable capital upgrades. Due to delays there is a short term cashflow issue, which I am anticipating to be in the region of $5-$10 million. That could be resolved by deferring investment in the ore sorting plant, but tgat would introduce a 12 month delay, as if the civil works aren't started this year, weather will prevent construction u til next year, taking commissioning into 2023.
Little Deer is an abandoned mine, which hasn't been operated in nearly 50 years, it will basically be constructing a new mine.
also point here is that on page 15 says Access to government funding for economic development to be evaluated could be possible for rmm to use ???? https://www.youtube.com/watch?v=_aiqVAi3PBU presatation on my link below. don't buy chicken buy rmm haha..
sorry i don't mean 70 million short term no no.. that could be 10 depends really. that duck pond mill going to be exsptive the equipment they using on top of that ore sorting machine the new fan the new drilling zones. if Cornish said little deer take 200 million to upgrade do. then Ming Mine will be following down that path... NOT now am saying future..
Really not sure on the funding GTM..... possibly be a case of upgrading / new kit etc brought in as production increases and cash flow improves.... self funding... but i am not an expert nor know the BOD's funding plan yet... only the mention of key milestones..... Ore sorting etc.... Cornish probably the best and most knowledgeable among this board to answer that one...
I think it's a valid question - how much cash are they short? I'm not sure anyone here knows the answer however but some may be able to give an estimate. It's not going to be anywhere near 70 million though.