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Gold/Mining/Energy : first quantum minerals FM on TSE
FM 27.190.0%Jan 8 4:00 PM EST
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To: Tim Davies who wrote (164)8/7/1997 1:04:00 PM
From: DRT   of 385
 
FM's interest in the Ndola Precious Metals plant was conditional on successfully acquiring BOTH Luanshya and Chambishi. FM was the only bidder.

Here's why ... While it could be a profitable operation over the longer term, there are short-term liabilities, as referred to in the article - the Ndola plant would cost $5 million annually to maintain and operate until enough feed is available (i.e. it requires additional feed from existing and suspended mining operations included in the ZCCM privatization packages) - 2-3 years from now? Obviously, this is a liability that no company is willing to take on unless there are significant benefits (i.e. mining assets) to offset the short-term operating costs of the Ndola plant.

Not being one to speculate ... the privatization process continues to move along, who knows there may be other opportunities for bidders if an agreement on Package A can't be reached.

DRT
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