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A couple of points: ASA only owns 75% of BNC BNC sells its Nickel at 65% of spot price There's also the issue of capital costs which they clearly haven't included. They are building a smelter, how much is that costing? There is a 20million bond at 10% to service, how is that going? They are due for a shaft deepening project. How much will that cost? And how much downtime will be required? At the gold mine they have expanded the plant, how much did that cost? What grades are they mining with the increased throughput? There's also a 10million IDC loan to pay back, how is that going? Just a few little things to think about off the top of my head.
I like Guinea as it's basically starting from scratch after all the problems. Having a good ground holding and an existing resource is a good place to be and with gold on the up there will be plenty of companies sniffing around soon. That's why I've taken a punt.
I can't imagine he would have taken the position unless he had something in the pipeline.
Lots of companies left after ebola and downturn. Beginning to see some movement back in now, which is good news for SMA and others that managed to weather the estorm. Managem are drilling at Tri-K at the minute, presumably some confirmation holes.
New Dawn pulled out of Guinea. More interestingly it appears that Managem are in the process of buying Avocet's Tri-K permits. Interest in the country is coming back.
Hahahahaha, 10 bagger? What planet are you living on? I assume you included debt in your fag packet calculations. What cost per ounce did you use for Freda Rebecca?
Don't forget that under current offtake agreement BNC only receive 65% of spot on Nickel
There's plenty of upside potential in that permit as well
"More moderate than Mugabe" doesn't say much :-)
The idea that a more moderate leader will emerge is a pipe dream. Emmerson Mnangagwa is waiting in the wings and with the support of the military is the most likely to succeed. Moderate he is not.
A civil war or more likely a military coup will cause huge issues. Fuel and especially electricty supplies in Zim are already fragile and those are things a mine needs. They are fortunate at Bindura because they are on the line from Cahora Bassa and have a special arrangement. If the bills stop being paid to Moz they will get cut off, which has happened before. No electricity no mine. There's also the issue of exporting concentrates which is solely by road. Major unrest will prevent this. So potentially no sales. This won't be a quick fix once Bob goes, there promises to be a lengthy period of instability which will not be easy for a mine to ride out. And of course a new regime might see nationalisation/appropriation as a way to get some quick cash....
Pity the mines are in Zimbabwe which is about to go completely belly up.
Yup, no way he would have accepted that unless he knew something was going to happen soon. And as you say it will also ensure a good deal for shareholders. So all good
Sorry but I get a bit suspicious when new accounting methods are used to make things look better. Also the smelter costs aren't included. Going forward they have a shaft deepening exercise to put in place which will be very expensive and will probably need at least a month shutdown to get tied in. So I'm not convinced their costs are under control just yet...
To put it in proper context we need to know the grades. Increasing tonnes is great if you can maintain the grade but that's not straightforward at Freda. I'm sure if it was easy as they say then previous management would have already done it.
"Net profit/loss went from $7.0m profit in the 2015 fiscal year to $9.6m loss in the 2016 fiscal year." How is that "very nice"?
http://www.reuters.com/article/us-guinea-mining-idUSKCN0ZF2NN?type=companyNews They will be looking for JV's and SMA an obvious target. Good news on the appointment as well. I'm in
profitable in Ni because of unsustainable high grading.
They have reduced costs by high grading the deposit. That high grade resource is not infinite, are those grades sustainable? Personally I don't think they are, the main reason being that they are going to run out of underground development.
Well I guess I've got it wrong in all the gold mines I've worked at! The more you mine of what? Grade of the ore is variable and the number one driver of cost in a mine is grade. You can mine as many tonnes as you want, if the grade drops your costs will go up. Freda is mining 2g/t underground which is marginal and leaves no room for dilution. Increasing tonnage and maintaining grade is extremely challenging especially in an aging deposit like Freda where the best bits have already been mined out. For an example of how higher grades result in lower costs have a look at what is happening at Trojan, where they are mining less tonnes but keeping costs down. The problem with mining all your high grade at once is that it can seriously reduce your life of mine, or kill a project completely, which they are in danger of doing