Im shooting from the hip here but here goes. Im not the authority. G Toll has provided a loan to get the Oxides plant over the line, with cost overruns on over runs. This is not occurring everywhere, as some here and there are coming in on time and on budget but more are not. Even the majors are having big cost problems. The NT is a small labour market and they are probably having to take what they can get for help. Infuriating, but people dont want to move with families and schooling etc. He has probably saved the situation, so some benefit is called for, but we only have to fund oxides according to the agreement, yes? Nearly there. The stock is selling for half what I paid for it, but once the first stage is up and running things should be smoother. Its a crazy market but product markets are still good.
On another vein, sulphur will be a byproduct that CMR gets to keep under the agreement, from memory. Up and running 136,000 tons a year produced. This is used to make sulphuric acid for acid leach plants. Now selling for $800 a ton. Over $100 million at current prices. That would come in at what, 50-60 cents a share per annum, as a by product at these prices, before lead (Batchelor will be worlds third largest producing mine) copper, zinc, uranium and gold. (Not including Oxides Copper and Cobalt) Its a dead set no brainer.
GT may be in for a cut, but its better than the thing falling over at the last minute, I hate to say. Try getting cost over run finance in the bad bad world out there just now. Theyre all putting it in their mattresses the idiots.
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
