Agree with the comments about a great project impacted by poor management. I admire the income analysis that Chuk and others have done and agree this remains an excellent project. My expertise is in capital works and my concerns are: (i) the design has changed a number of times since the company purchased and transported the major equipment. I hope that this equipment is still relevant with the current design, and those funds have not been partially wasted, or worse, need to be replaced by other long lead time times that will delay completion and commissioning; (ii) after the failed first effort to engage a contractor, they moved to a more traditional design then construct approach, whilst this was a relief given it was a lower risk approach, it does require and experienced construction project manager. I looked at the website of the nominated project manager and it did not appear to be a construction project manager but a general advisor and this is a major concern; (iii) time value of money - whilst the crazy 30% jump in construction costs worldwide is over, costs are still escalating ay the traditional 4%, and whilst we are relying on the company construction estimates these are quite old and may have increased; (iv) management costs - the company has ramped up management costs and each month funds that could be used for construction are required for op costs - we need to get to construction asap to minimise this. I really hope my concerns do not eventuate, but as per others have said, based on the shambolic handling of the contractor procurement and recent options disaster, I have lost confidence in the management of the company, and am living on hope rather than confident in a great outcome!
MNB Price at posting:
9.2¢ Sentiment: Hold Disclosure: Held
