Well we have plant equipment to start our mine with, which includes training and maintenance of this equipment.
We can design our workshop locations...as we know what plant we will be getting... as well as our CHPP and any other facilities needed.
We have CLARITY in relation to negotiations for our remaining financing of the CHPP. In other words we have organised all the financing we need except for the CHPP...which is $200 million. That is all we need to complete the start up of our mine.
I think that will not be a problem and will happen sooner than you think. JP has one more task to complete and the game is on. The coal is cheap to produce and has all been sold off is his trump card. The bankers love to finance contracts that have been signed.. and they are using the bad coal price to bargain a better interest rate for themselves..but PJ is masterfull at his game by having none of their excuses count as he knows the coal is sold and South Africa is in desperate need of assurances that they will have coal for there power stations.
Komatsu know the project is going ahead..that is why they have concluded their part of the deal.
The bank of Africa is eyeing at having a share in the project..and has the money..so is pressurising the big four banks to come to the party by offering an RES an alternative
PJ has done well by keeping share holders value intact and not falling into the banks trap of bribery...Everybody knows this project is viable and going to deliver huge profits.. no matter what the coal price becomes...as more than $74 is needed to break even in Australia at the moment.
At $73/ ton Australia is producing 10% of their coal at a loss and most mines are only making $5/ton profit.
RES needs a price range of $58/ton to break even..Macquarie quote... makes it one of the top 10 coal mine projects in the world.
RES Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
