from roco 20023 Jun 2015 22:11
I attended the EGM today. Just a bit of feedback in summary form. Very few private shareholders compared to normal.
1. We are financed!!! Yes-Wow
2. Engineering finished
3. Wet commissioning started
4. 1st Concentrate August
5. Positive Cash-flow from January 2016
6. New communication strategy being developed using 4C Communications. They will have two key executives, one responsible for Europe (inc UK) - Catrina Corbett and one for North America. There will be an enhanced Investor Relations Unit at EMED and the new Co name will help to spearhead the communication programme.
7. Resource Statement: Outline results known by Alberto. He had hoped to announce them today. We can expect a "significant" increase although grades are similar. In due course Underground higher grade material can be blended to enhance the grade throughput. The Resource Statement will be released sometime in the next 4 weeks. Just undergoing final sign off. Ready for AGM in August perhaps?
8. New Trafigura Director announced today and two more Independent Non Executive Directors idc. Note Independant.
9. Alberto said they are working through the night at the Site with 500 people on Site.
10. His great summary ("Sound bite) was:- "50% decrease in spend for a 50% increase in production". Sounds good when you hear it presented like that!
11. 9/10mtpa production 12 months from now. Still all about optimisation.
12. Waste recovery: 82% as known. To reduce it hits the concentrate.
13. I think these numbers are right: At $2.6 Copper and 5mpta looking at a margin of 60/80 cents & at $3 circa 1.20 cents
14. Alberto stressed the importance of the fact that this is a low capital intensive project. So many other projects in South America etc. are struggling to produce/open in these low copper price environments which will curtail output and in time create a supply/demand mismatch, pushing up the copper price. He was very positive about the copper price going forward. He sees us as well positioned in this environment.
15. Share consolidation: That was hinted at. We probably need that given the 3.5 billion shares now in issue.
16. Asked about Directors buying shares with their own money.
17. The Auditor, Constantino Schizas of Moore Stephens was there and was very complimentary about the Co. when I spoke to him afterwards.
18. Alberto stressed he hadn't want to promote the Co. to hard and fail to meet expectations. Now the Finance is in place it sounds like the Board feel far more confident about selling the story.
19. The parts of the Plant that have already been put into operation for testing , have operated very well & smoothly. They are realistic about expecting some hic-ups, but todate everything seems to be progressing as planned.
20. Any outstanding Permits are now just operational formalities.
Hope that helps.
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