Sxwee post2 Jun 2019 11:48
Another post that I think is important to keep in mind and if money is needed to drill and prove up our resource/new tenement and get to mine in 2020 ....
I am confident plant funding will come from forward selling, and debt secured against the OTA..
But before the OTA can be fully signed, even though the 80-100% has been agreed its now up to KODAL to accurately tell SC how much that 80-100% equates to, and at a what grade.
So for that we need the feasibility study which is being worked on for exploitation permit. Which luckily at this moment shouldn't as far as I can tell be affected by any delay from ESIA as although its required to submit the permit application, no response from it feeds into the numbers.
So path is ESIA -> Exploitation permit-> OTA signed -> Funding sorted -> Plant build - Production
And here is where I find KOD to still be a better player than BGS at the moment - as soon as we have the permit back, ai think the dominos will fall quick as the OTA is already agreed in principle, just waiting on confirmation of numbers. BGS will only be starting OTA talks once the permit is secured which adds delay hence there own late production date prediction.
Yes I know the usual arguments of grade and deposit size which is potentially something the Co is working on with more drilling and license aread. As the OTA will be 80-100%, the more we can guarantee them we'll deliver the more we'll be able to sell already now without renegotiations.
If is the case see it from this perspective, if they said "guys, if we spend £1million on drilling now - we think we can double the output of the mine and therefore double the guaranteed sales for the next 3 years which equates to added profit of £100million over those 3 years - whaddaya say?"
It doesn't excuse the bad communication, or the poor shareprice which would mean more dilution if more funds are needed - but this is a 3-4 year plan minimum at this point. If the BoD have reason to believe that measures take now can improve the company outlook over so long then no they won't give a f'ck about our problems and they'll crack on
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