re: revised dividends.
Capman Your calcs look good, but the only further point Id like to make is that its likely to be easily achievable in the first year.
Firstly they will be starting mining on a very rich part of the mine, as mentioned earlier post grading up to 14% in a massive lens which will easily offset any startup problems.
Secondly once the equipment arrives it shouldnt be difficult to get the processing equipment working well. The technology, if you can call it that, is so simple and widely used that the local mechanic could probably get it up and running. (perhaps a slight exaduration)
Thirdly the costs quoted by managment are likely to be conservative. As an example they are suggesting the product produced is being quoted as being at least 22% nickel (the highest grade produced anywhere), yet in their trial milling where they tested the most difficult ore types and some very low grade ore, the lowest grading they got was 28%. Quite remarkable.
And Im sure they will increase the recovery rate, 80% is what they achieved at the trial with no time or consistency of input materials to experiment to get the best recovery. They can add dispersants etc to the water to increase recovery, the right additive and % depends on ore grade, rock characteristics etc, so varies. They are setting up their own mettalurgical testing lab on site so this can be constantly monitored.
I think we will be pleasantly surprised at the profits they achieve.
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
