Is anyone else a little puzzled over the disparity between the numbers thrown up for Marampa and Mayoko in the latest presentation and with Marampa, elsewhere?
In the latest presentation, towards the end, beside Marampa is 500m(?) and beside Mayoko is 100m(?) as possible sale prices. On face value, this is a bit of s mystery to me. Marampa is certainly closer to a JORC resource, yet when one looks at the two projects, Moyoko stacks up better in many ways.
Infrastructure: After the Marampa rail is upgraded in the near future, both will have existing rail to a deep water port.
Marampa willl have initial access to 2mtpa, later increasing to 10mtpa when the Tonkolili's alternate infrastructure is completed.
Mayoko has a rail capable of 11mtpa.
Resource: Marampa is seeking to have a JORC resource of .7-1.0BT of magnetite by year end.
Mayoko is targeting a .9-1.3bt resource. The magnetite is of higher grade than most projects, including Marampa and also has a DSO hematite resource for early cashflow.
Brokers: Have generally placed a slightly higher vakue on Mayoko, although it's also true that these valuations are crudely based on a simplistic, 13c per tonne.
The advantages I see with Marampa is that it is closer to a JORC resource and sits between the monster Tonkolili project and the coast and should be swept up by a buyer on that project. Even so, Marampa being worth 5 times as much as Marampa, or conversely, Mayoko only being worth a fifth of Marampa doesn't make much sense to me. Does anyone have any thoughts on my conundrum? Marampa being more advanced, for mine, doesn't fully explain such a difference.
Peter
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