I think the majority of ongoing work on the ground in Brazil is the detailed engineering for the various modules of the process and the final design piece in preparation for finance completion- design would be taken to quotation stage with potential suppliers at this point so orders can be placed very quickly. I think this is the current work of the PM and his team. From a cash burn point of view even though a team of 10-20 would be likely the relative wages are low in Brazil.
Ref the sell off - i still await an RNS to show which or all of the funds have sold all/part of their holdings- I think we have distressed selling to cover fund redemption's thus they have no option but to sell assets, its like the Woodford situation. The sells are too persistent and no PIs are selling this volume down here, it must be funds.
It creates such a buying opportunity right now, in basic principles the company is better funded than ever, has moved the projects forward with one fully permitted and has Orion in support, despite this the share price is at 10y lows and potentially at or around cash value, its crazy.
Even with COVID19 currently impacting short term demands, the medium and long term remains unchanged and in fact may look more positive with all the stimulus packages announced and still to come. Finance for Araguaia may in the end be more easy to achieve which would be an irony.
I wish I had cash for more right now. 2% will have to do. GLA
Worth a quick read, shows just how much cash generation these big miners have. Eyes are open for opportunities too.
https://www.reuters.com/article/health-coronavirus-bhp-group/bhp-in-good-shape-to-act-if-coronavirus-disruption-brings-ma-openings-chmn-idUSL4N2B30IM
A couple of interesting articles
https://roskill.com/market-report/nickel/
https://roskill.com/news/nickel-and-nickel-sulphate-coronavirus-likely-to-delay-indonesian-nickel-projects/
Yes that's 28m shares, bought many of them during the long lows of around 1.5p. Patience and faith of a saint required, but it's always been mostly a long term SIPP play.
As stated earlier, all objectives have been achieved, they know what they are doing.
Looks like good timing for your top up. Like you I have been building a position and have scraped my way to just under 28m over 6years, selling others, investing dividends etc. Watching and riding the highs and lows is painful when your not trading but every thing JM has said was in plan has happened, just the timing that's drifted now and then. Financing remains a risk but a diminishing one. It's almost a derisked purchase now with the Orion deal. It is shaping up to be THE year of reckoning.
Just checked the cash number on the CAPEX contingency its USD $65.3M, hopefully thats more than enough.
Good discussion.
Just a point in terms of the build risk, there is a substantial 17.2% contingency in the CAPEX, much higher than you would normally see, so they may have been prudent enough there but time will tell.
I agree financing should see a significant re-rate. The market will then know they are building a mine not just the owner of some assets that "may" be developed so it s a massive de-risking point, major share holders will provide the balancing equity at the end you would think.
I don`t tend to post much on this board more so on ADVFN but do monitor this board as its one of the other sensible ones. I am a long term holder over 6 years with quite a large holding now. All eyes on H1 2020, hopefully no curve balls !
GLA.