Wayne McCrae said this in the Gold Coast Business News last week. I will post it for the infomation of CDU posters who may not have had the opportunity to read the article. This is an extract from the full article.
"Work is continuing on the Rocklands processing plant and ancillary facilities with the aim of achieving full-scale production later this year.
When you're behind schedule the big institutions want you to throw money at it.
But up here in the bush they charge up to $5,000 a cubic metre for reinforced steel concrete. They're fly-in fly-out concreters and the big companies will pay that.
We had 20,000 cubic metres of concrete to pour which would have been $100 million in concrete (at that price), but we have managed to do it for just $20 million.
We are building a $300 million plant capable of doing four circuits running 3 million tonnes a year - so it's actually treating 12 million tonnes of product at one time.
Taking this measured approach to the mine's development ultimately will benefit the company and its shareholders. Charging to full production capacity any sooner is "an exercise in futility".
It might keep a few institutions happy, but it's not good for the company, because the next few hundred million you make has to go to repay that debt.
We tried to do this project debt free from the start. That was the whole idea.
On that score, CuDeco remains on track. CuDeco has cash reserves of $47.4 million and no borrowings at the end of the December,2013, quarter.
Despite the delays. CuDeco is making significant progress at Rocklands, where more than 500,000 tonnes of ore has been mined and stockpiled for processing and eventual shipment to Chinese smelters."
So far so good.
cheers,
Max
CDU Price at posting:
$1.76 Sentiment: Buy Disclosure: Held
