Does it get better than this?26 Mar 2015 06:56
Post by Roco on iii seems to sum it up.
It perhaps seems strange to be able to post an outright bullish post about EMED when the SP reflects a great deal of worry and is a clear reflection on the levels of uncertainty over how the project will be financed.
But for me, as a recent visitor to the mine, the true state of play and the reasons to be confident are starring us in the face for those prepared to look.
There are quiet a few clear pointers: these are a few of them-
1. Look at the new photos on the Web site to see first hand the progress. It is amazing and let me tell you so much has been progressed even since I was there just 3 weeks ago.
new primary screen installed
refurbished pumps.
primary crusher dust extraction unit
flotation unit progress.
and so on - see for yourselves.2. Alberto presented a slide at his London presentation last week which gave a clear signal that they are 85% complete. In fact Alberto told me that the Floatation equipment (last stage in the process) will be the last to be completed. Looking at the gallery of photos & from my own eyes having been there, I expect that to be July, some 6 months ahead of schedule. That also tells us the rest of the stages will be completed before then. Amazing.
3. Last week we got the Blasting Permit & we know the Mining Contractor is appointed, on site and with his massive vehicle fleet. They are ready to go. Look at the Crusher progress & deduce that they will be ready to test production in perhaps 6 weeks.
4. The Environmental Bond is executed and is another major endorsement of external confidence.
5. The €30m unsecured bridger told us the three backers are happy to advance large sums of risk money to get the job done and would not have done so if there was any chance of this failing at the last hurdle. Be realistic. They are no fools and have undertaken exhaustive D.D.
6. Look at how calm & confident Alberto is. He is going full speed as he knows the funding is not an issue.
Conclusions: what does this tell us?
1. The cash needed to complete the last 15% or so is significantly less than so far admitted by the Co. It has to be. Without telling investors in words of one syllable Alberto gave all the pointers in his presentation and it is also there to see in the gallery of photos. Forget the amazing $50m savings and the grant etc., the fact is clear to see, we don't need much more to complete the job.
2. I suspect Alberto can't tell us yet the full picture yet, as negotiations, as always are sensitive with the three, but I expect a further "stick & paste" solution (I.e. Extended bridger with a top up) to get us to a position where Alberto can prove to the backers that the refurbished plant works and will process at least 5mtpa as initially planned starting later this year.
At that stage I suspect the global finance deal will be finalised. Again remember Alberto keeps telling us about "fairness". What does he mean? Well
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