disappointed, page-17

Hi MACLEOD22

I am not sure that you have seen the following article which suggests that the funding maybe 'in hand':

"Nkwe bucks trend with plan to open R6bn platinum mine
ALLAN SECCOMBE
Published: 2012/06/15 07:48:42 AM
NKWE Platinum plans to bring a R6bn platinum mine into production in the next three years and it was in talks with South African development funders such as the Industrial Development Corporation to raise capital towards the project, CEO Maredi Mphahlele said this week.

The decision to seek funding and launch the project comes at a time when the local platinum sector is experiencing a slight downturn.

Nkwe, which is listed in Australia, has revised a bankable feasibility study on the project, bringing the cost down by R3,6m and bringing forward the ramp-up time by three years by using decline shafts in the shallower portion of the Garatau ore body rather than a vertical shaft.

The project is near Xstrata’s Lion ferrochrome operation at Steelpoort, in Limpopo.

Nkwe had decided to start the project because by the time the mine and concentrator reach full production of 330000oz of platinum group metals in five years, the platinum market was forecast to be in much better shape, Mr Mphahlele said.

"The dramatic advantage of the optimised model is that early access and mining of the Merensky Reef subsidises development capital by around R1bn in terms of positive cash flow," he said. This meant Nkwe would need to raise R5bn instead of R6bn, he said.

Nkwe now planned to mine just the Merensky Reef, saving the UG2 reef for later, he said. Merensky ore is highly sought after by platinum smelters, which use it to offset the chrome content in the UG2 ore.

The change in strategy will allow it to renegotiate off-take agreements and result in a greater portion of concentrate bought by a third party and generate higher cash flows for Nkwe, Mr Mphahlele said.

Nkwe’s mechanised mining method will contribute towards a production cost of $858/oz, or R7149/oz, which will place it amongst the lowest-cost producers in the South African industry, Mr Mphahlele said. Mechanised mines use fewer workers. Labour costs make up about half of mines’ costs.

DRA Mining Consultants was responsible for compiling the optimised bankable study and it took 22,8-million shares in the company as payment for 18 months of work. This gives DRA about 5% of Nkwe.

"With the optimised study now complete, the board of Nkwe Platinum, together with its advisers, will be in a position to conclude joint venture development negotiations shortly," Mr Mphahlele said.

Cheers

R1