In the last 7 Months ......NIU has undertaken some significant plant upgrades to be in a position where we are consistently processing high tonnage, the word being consistent....something we have never done.
14 March, 2018
Installation of the 440kVA Cummins generator and associated power distribution line
8 May, 2018
The new, larger vibrating feeder has now been installed, and that modification works to the feed hoppers have been completed.
16 May, 2018
Taken immediate delivery of a further two (2) second-hand Komatsu D85 bulldozers and one second-hand Komatsu HM400 40 tonne articulated tip-truck from Harmony Gold’s adjacent Hidden Valley mine. I believe these included all the spare parts they had as well as part of the agreement.
2 July, 2018
Completed the funding and acquisition of a new 6 tonne JCB excavator and a second-hand Kawasaki wheel-loader.
Sept 2018 Qtrly
Two Komatsu D85 bulldozers, Komatsu D65 bulldozer, new 6 tonne excavator and a second-hand Kawasaki wheel loader now all operational, significantly increasing mining capacity and volumes and resulting in an increase in mining and processing efficiency
The Company is planning on expanding its Edie Creek mining operations and capacity through the acquisition of a third large excavator, a 30t articulated tip truck, a fuel and services truck and another loader. These are currently the subject of negotiations.
Equipment-wise, this is a very significant fundamental change in the last 6 months.....as yes they have been promising these changes for a very long time.....and these promises have finally been fulfilled ....yet the share price hasn't reflected the fundamental changes presenting an arbitrage opportunity
The next few quarters will be very different to last two based on these fundamental equipment improvements, which are significant
NIU Price at posting:
0.2¢ Sentiment: Buy Disclosure: Held
