The main reason why the Merelani JV was so lucrative is that it was going to cut down the time taken for us to reach production due to the mining lease already in place.
Now Epanko is basically level pegging with permitting in that regard so the benefits are no longer there.
Also John Park was quoted in an article saying the cost of refurbishing the plant will almost be as much as building a new one from scratch.
If the JV does not eventuate KNL will have a 100% owned project like Epanko but with much better infrastructure. I suspect the company would begin ramping up development of Merelani once Epanko plant construction has commenced.
Just remember - the JV is not the be all and end all.
KNL Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)