I'm sure all will be revealed in due course, however a few questions regarding the Transnet MOU.
Firstly, what does the phrase "to haul Boikarabelo coal on a take or pay basis" mean exactly?
I gather first coal sales will begin no sooner than 1st July 2014 now @ 4mtpa, which despite being less than our 6mtpa target and another delay, is very comforting to see in writing.
Is the 4mtpa factor going to thwart our plans? Ledjadja will push Transnet to unlock additional capacity by upgrading existing lines so maybe that will give us the 6mtpa by 2014. I guess the final details of the Transnet contract are yet to be decided so there is probably room for negotiation.
"The rail link is part of the capital expenditure of the Boikarabelo mine and ownership and operations of the rail link will be transferred to TFR in due course with compensation to be negotiated."
I wonder what sort of 'compensation' TFR will offer us for building a 50km rail link capable of hauling 22.5Mtpa out of the Waterberg. Surely they will be thanking us for decades to come? And, will this compensation match or exceed our capex? Also, would it be prudent to factor in this 'compensation' to any valuation placed on the company at present times?
RES Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
