september quarterly, page-2

Hello NKP holders

Long time since I have visited the thread. Been watching the SP action with interest.

Reading the quarterly, it appears the CAPEX has substantially reduced yet PGM output is still high at 480,000 ounces. This is very different to the past as the CAPEX for delivering these sort of ounces was stated at 7-8 billion rand.


Mine development capital cost reduced to circa R3.5 – 4 billion;
• Time to first ore production estimated to be 2 years;
• Production after 4 year ramp up will reach 300ktpm or circa 480,000oz per year for 17 years;
• Exclusive mining and development of the Merensky reef eliminates need for refrigeration and brings consequent reduction of operating and capital cost;


If this is correct, I can see why the SP has moved because for $500 million AUD development you will be earning around about $250 million NET per year for a very, very long time! I assumed a margin of $500/oz. This would be a very profitable mine and one worth bringing online.

As always though, it comes down to trust. Are these numbers accurate? How come there has been such a massive reduction in CAPEX (50%) with no loss of PGM output as such? Can these numbers be verified independently?

I personally will wait and see as an expired option holder whether I get offered any options. And I will only stump up cash if the new options are clearly in the money.

Good luck to all.

Ralph