Ah, yes, it’s a good feeling when the amnesia lifts a little. I...

Ah, yes, it’s a good feeling when the amnesia lifts a little. I am having recollections of talking about the area NT01 and NT23 (now labeled Alim 01, Alim 05, Alim 06) and being told the high quality rubies are only a mere one meter (or less) below surface. Makes for very cheap extraction cost.

Also talked a little about tax and he said that the capital outlay (I believe about $10m) can be written off over 5 years. I would assume at $2m pa.

Wombat,
I am aware that the 2/3 shifts proposal has certainly been bandied about before but there’s never been anything concrete said about when it will be implemented to my knowledge. The part that got me excited was the 6 month time frame for (not 2, but) 3 shifts.

I am glad to see you have all the figures for 600k pa because it means it won’t be a big job now to tweak those numbers by a factor of 1.66 and expand the target to 1,000,000 crts pa (his 18 – 24 month target)

Re the target for March auction: Current production would suggest around 86k (5 months prodn) plus any stock left over from the Oct auction. The move to 2 shifts will obviously improve this but he is not able to accurately indicate when this will happen.

Safety,
Coupled with the fact that the company is situated on the African continent where things can turn to toast very quickly, there’s no doubting there is significant risk. A successful auction in October will go a long way in derisking the situation however. A mere $20m from the auction would clear the debt and provide sufficient funds to cover operating costs. I somehow suspect they will do far better.
IMO