In my personal view. This why the last circa $2M working capital will not stop progress (no matter how it is raised).
As per my comments above, the valuation of US$200M is based on the Boikarabelo site (undeveloped) and excluding the Waterberg site.
My personal view is that they won't build an entire railway at US$75M for the purposes of 6.6Mt to be sold as outlined in the current plan...with that sort of spend on infrastructure scaling is an obvious outcome.
THIS is the missing link below- The Waterberg (KUBU MINE).
A facility that doubles RES output in size is pretty much ready to go with the addition of Waterberg 1 facility.
To make this a reality-RES (collective group) will set up an 8.2km conveyor line from the Waterberg (KUBU) to the current proposed CHPP site at Boikarabelo, and utilising the existing infrastructure that we are currently funding at Boikarabelo it will be loaded for the proposed rail system to transport to domestic power stations and Richards Bay for export. All maintenance of yellow goods etc. will be completed also at Boikarabelo site. Also, the extra accommodation that is used in construction phase will then facilitate required accommodation for ramp up of Waterberg.
This effectively means overnight, they double both the domestic offtake and the export offtake.
With the entire 6.6Mt of coal at Boikarabelo already contracted, this leaves us with a another 6.6Mt from the Waterberg (KUBU) mine ready to sell to the domestic and export markets (1:1).
At the end of 2016 RES completed the EIA-this is the Waterberg 1 site that is the next step after the current proposal at Boikarabelo.
I have cut and paste a paragraph from the EIA below - page 49
5.2.3 Mineral Processing The ROM coal will be transported by 240 tonne haul trucks from the open pit to the crushing station and ROM tip area. The ROM coal will be crushed in a double stage crushing station and temporarily stored in a stockpile at the ROM tip area. The ROM coal will be loaded onto an overland conveyor which will transport the coal on a Free on Mine (FOM) or Free into Plant basis to the adjacent Boikarabelo Coal Mine, owned and operated by Ledjadja Coal (Pty) Ltd; the ownership of the ROM coal is transferred to Boikarabelo Coal Mine upon entry to the plant. No beneficiation of coal will be undertaken at the proposed Kubu Coal Mine. The Boikarabelo Coal Mine will beneficiate the ROM coal and produce a primary product for the international export market and a secondary product supplied to the local market for power generation use. The primary and secondary products will be produced at an approximate ratio of 1:1.
Am I getting ahead of myself? I don't believe so, as this is what I am suggesting PIC and Noble will not throw away.
