Hello All,
I came upon some data/facts, most of which I would expect are being disseminated to analysts at the dog & pony.
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Summary ($CAN)
CAPEX 61.6 Mil
Revenue 83.21/t
Mining costs 27.74/t
Annual Sales 57.35 Mil
Net After-tax EPS 23.5 Mil
Production 120,000 oz PGM pa = 140,000 oz Au equiv @ 60,000 tpm
Total Reserve 10.48 Mil oz, Total resource potential 3X because of steep dips, Cash cost per oz of Prod., US$86/oz PGE or US$75/oz Au equiv.
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From a more detailed commentary, I picked out a few items:
-Mining rate 60,000 tpm - 120,000 oz PGE pa + 1,406 tonnes Ni + 848 tonnes Cu + 27 tonnes PA
-Large additional potential on strike and down dip
-Chromite markers to control mining and keep dilution down
-Shaft, infrastructure & development in place +R110 mil
Tax loss carryforward (C$26.6 mil)
-Proximity to Klipspringer
-Concentrate purchase contract with Impala therefore no marketing worries
-orebody close to surface
-similar sulphide content in 2 reefs, therefore can blend for optimum concentrator recovery. Allows for mining contingencies and quicker payback.
-Can obtain services of experienced PT miners and mgmt. Chris Jennings has PT experience (Western Platinum Mines). SUF has backing of Impala Platinum Mines.
-Low Capex versus North America. 4.5 year payback
-Uncertainty on Russian export ability. Weak Rand/Dollar exchange favours "Boom" for RSA Pt/Pd producers.
-Finance available in RSA. SUF contribution could also be paid for by selling royalty or charging a premium to a partner
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Why Implats Mothballed Messina:
-didn't want it in the first place
-total change of mining method
-pessimistic dilution estimates
-lack of internal champion
-too small
-lower PGM value compared to other Impala mines
-poor marker outlook in '92
-10.5% IRR
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There is bunch of other stuff, but I'm beat. It will be interesting to see how the analysts see this. Certainly the cash flow issues after M1 seem to have been addressed.
Regards,
Confluence |
