Take a look at the slide show below:
southernera.com
I was surprised by "Global PGM producers limited to 12 companies". Sure would like to know how they stack up....
Here are some of the slides. Lotsa mora worth reviewing. We will have 3 PGM mines, min. 1 diamond mine, and exploration to boot. Whats that work out to boys? $5.43 earnings per share by 2005? Dividends of $3.25 per share in 2006? Just WAG's on my part. Anyone up to the task?
I would give it my darndest, but I'm off to Europe with the family for 3 weeks in 18 days. I was thinking how when time permits, say 2013, I will spend hours researching, sharing ideas, learning, and just being a jolly good guy on these great threads and their topics. But I guess others are in the same boat. Summers here and the girls look good! Out.
SouthernEra
Commodity Profile
•Platinum Group Metals (PGM’s) and Diamonds are amongst the rarest of commodities.
•Barriers to entry for both commodities are amongst the highest in the mining industry.
•Global PGM producers limited to 12 companies.
•PGM’s concentrated in only three regions – South Africa (platinum), Russia (palladium), North America (palladium).
•Global Diamond producers are equally limited.
Messina Platinum
Phase 1 Economics
Ore Production (tpm) Grade PGM+Au (g/t) Average Recovery (%) Payable Metal (%) 5PGM+Au (oz) Payable (oz) Platinum (oz) Palladium (oz) Rhodium (oz)
120,000 6.30 83 79 220,000 167,000 100,000 80,000 12,000
Platinum Price /oz Palladium Price /oz Revenue/tonne Ore Cost/tonne Ore Profit Margin Capital Expenditure Life of Mine (years) Free Cash Flow (p.a.)
IRRUS$500 US$400 US$60/t US$18/t 70% US$72M +20 US$40M 48%
Messina Platinum
Sale of Concentrate Agreement
•Messina has a Phase 1 LOM Sale of Concentrate Agreement with Impala Platinum.
•Impala Platinum purchases at market 100% of Messina’ Phase 1 production up to 160,000 oz./year.
•Metal is concentrated at Messina and trucked in slurry form to Impala’s refinery in Johannesburg.
•Impala smelts, refines and markets Messina’s metal in exchange for approx. 20 percent of the metal.
•Messina retains the right to concentrate and smelt metal prior to shipment to Impala.
Messina Platinum
Metal Supply Agreement
•Messina has entered into a 5 year Metal Supply Agreement with a major international automotive company covering the period Jan. ’02 – Dec. ’07.
•Messina will supply up to 232,000oz of platinum and 178,000 oz of palladium over this period.
•Messina receives market price except when the price drops to the floor or rises to the ceiling.
•Ave. floor prices: Platinum $400, Palladium $370
•Ave. ceiling prices: Platinum $600, Palladium$658
•Either party can terminate the agreement once the Phase 1 debt facility in serviced.
Messina Platinum
Phase 2 Feasibility
•Phase 2 mining block located 10 km to east of Phase 1.
•Phase 2 resources 5,64M oz. Reef outcrops at surface.
•Feasibility study commenced in Q3/01 due for completion in Q3/02
•Initial indications are that Phase 2 can support a 120,000 tpm mine, producing approximately 200,000 oz/year.
•Forecast capital approx. US$90M. |
