Yoda - webcast summary Part 1/223 Jul 2015 13:22
Ok I took some notes as clearly some couldn't watch it, here is a summary of what was said:
MINING LICENCE
~all processes concluded and passed all stages of application
~application completed to right standard and passed by the DMR
~awaiting final coms from DMR
~significantly after 1/2 an hour Leon confirmed they last spoke to the DMR on Monday. (I did state here on Tuesday that things had been confirmed.)
~Leon said the DMR confirmed JLP had successfully passed all stages and they will be granting the licence.
~ in the final processes to issue. (I'm told this is the final admin side, i.e signatures.)
TJATE
~attracts "many interested parties" for partnerships
~previous NPV of $1.4B to $1.6B "is fair value"
SURFACE TAILINGS PROJECTS
~Earthworks, ground clearing, drilling and levelling has already commenced at both sites.
~JLP won these projects against tenders from 22 other companies.
~Feasibility studies, testing and the engineering designs are complete and have been independently validated.
~engineering firms appointed for projects and capital costs agreed
~finance arrangements have been agreed and being finalised, with shareholder confirmation in 4-6 weeks.
~The sale of Middelburg is enough to pay for the first plant alone, they will be fully funded for 2 separate processing plants at both tailings sites, no equity funding required.
~Processing plant construction starts in Oct, production in June 2016.
~Surface tailings production costs between $400 and $500 per Oz
~capital costs to construct first site $7m-$8m to produce 1,000 Oz per month
~profit will fund further surface tailings projects. We are talking to several other chromite producers in SA and in Southern Africa
~additional major benefit is that we are also have significant Chrome production from the surface tailings for partners not just the PGE's
~future projects aimed at processing our own materials, not others. (Presumably this means we are looking to purchase surface tailings outright).
~Hernic/Mitsubishi tailings project will take 3 additional months to construct as much bigger. It will be the largest surface tailings plant in the world
~staff estimated to be 55 when producing. Significantly lower overheads, no actual mining where project costs are 60%-65% of overheads. So low platinum prices not an issue.
~current low platinum price unsustainable for producers, so price expected to return above $1,250 in the coming year.
~projects life expectancy is over 10yrs and possible expansion in line with the expansion of the partner operations.
~flexibility to ramp up production within weeks to take advantage of future spikes in platinum price.
MIDDELBURG
~we retain access and power rights
~we have rights to co-develop all future power plant expansion, to use utilities at cost and to utilise our 5Mw smelter.
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