Not sure why AB would want to speak with him again if he reads the last couple of comments.
Turnpan - you are correct. Glencore don't even bother processing their own waste.
I remain convinced that JLP will be trying to change the process and therefore the plant design. That can potentially be done without revisiting the JV. A bigger plant (which is needed to make the economics more attractive for everyone) would likely require a renegotiation of the JV.
Not sure if that is aimed at me.... I am not a holder or JLP. I don't really follow them either. I have met Leon a couple of times and know what an asset he is. JLP's skills are really as a processing company, and they are focused on waste, which is why they are so important to BMR. Scurrilous is a weird choice of word. BMR has disappointed for years. I don't say much that BMR's supporters don't already say. This JLP v BMR nonsense is of no interest to me. I just think JLP has a good business model and good people. BMR has a decent asset, unknown economics and questionable leadership.
There is a difference between need and want. JLP want Kabwe, but they have a business without it. My statement was factually obvious. I don't dispute who has the license.
Bring - your faith in the BMR management is mind-boggling. I am certain that it was Leon that got the license back. Without JLP's reputation for getting projects into production there is no reason to give the license back to BMR. You think JLP will "find its feet"?! Kabwe needs JLP. JLP doesnt need Kabwe.
It's easy to add new float cells, mills, whatever, but it's not very cost effective to do it in such small increments. But it maybe the only option.
Operating costs will not change materially until the plant is in production. At that point they are financed by selling metal. Dont bother with more q's as I need to update my filter for your new handle.
I'm not suggesting that this is the approach for now. Construct the small plant now and effectively treat it like a pilot plant for the larger plant. It would greatly assist the financing process.
Catchingtheknife - the placing is for working capital. JLP are paying for the plant. You know this I suspect. If the economics of a large plant are proven it would be easy enough to raise the capital. As much as 85% could be via debt. It would be massively value enhancing for shareholders so dont stress.
C. 50m for a 1m tpa plant, as a guess.
Yes. A 5m tpa plant is c. 150m. Maybe it would be 50m. Maybe 70m. And apologies for picking you up on the previous comment. Just noticed it was to the new Paddwah...
Bit unecessary attack though. It is a board for chat. It's not as if every post in here is full of incredible insight.
A much bigger plant would require debt as well as equity. Otherwise it would destroy shareholder value. It needs a $100m+ plant. Debt at that level is not possible without a full feasibility study ($1m to $2m and 12 months). Maybe they will adopt that process using the early project cash flows. Otherwise the project is better off being sold to someone with the capability to make that happen. JLP has access to those types of funders and I would expect them to buy out BMR's stake as part of that process. Not necessarily a bad thing for bmr shareholders.
I think it is naive of AB to think that he can borrow money pre-production. Usually that is only possible with an independent bankable study in place.
No, the feed has no cost. You'd have to make a number up.
Thank you for the considered reply!
Sorry to disappoint you but you will see me say that in a number of historic posts if you care to look.
You could, but you'd wrong. And do you willfully misinterpret my comments? I see the potential in this project. I have concerns about the economics as we have no recent view on project opex. I have written about my opex concerns and the need to change the flowsheet. I expect jlp to make more from the project given their 40% share, 29% share of BMR, the preferred equity and 30% coupon and their operating contract. Plus they are not dependent on kabwe for share price growth.
Another ad hominem then. Ironically.