Ann: Quarterly Activities and Cashflow Report, page-57

First 57 Last

Share
Profile

Follow
nihilism

11,400 Posts.

565

02/05/18

08:59

Post #: 32817442
Share

Originally posted by Tomasp ↑

That was all assumptions. As I said, its pretty much impossible to tell without seeing the actual equipment specs and ratings, the set up, the product flow etc.

Another thing to consider is I would suspect it would also be a lot cheaper and faster even if they have to gut out the entire plant and upgrade every piece of equipment and upgrade the entire facility, rather than having to look for a new location to manufacture, purchasing/leasing the land, getting all manufacturing permits in place, regulatory/gov. approvals etc.

As you say, it'd be quicker to purchase all necessary 'off the shelf' modularised equipment rated for say '10x', shut down for a month, and just swap it out.

Again, we're just speculating here, and unless we have all the details, again its impossible to say anything with any certainty. What I will say however, is that given the company has started to meet all goals and milestones as announced and how they've established the non-bauxite side of the business in such a way as to minimize the expenses and timing - I personally trust in their decision to upgrade.

Expand

agree mate, too hard to know. I will say my experience with brownfields projects usually the indicative first pass financials look good but the site work portions always blow over budget and time. Things just aren't as a clear as when building new plants most of the time. Not sure if you've had a similar experience in your area of expertise, maybe us minerals guys need to learn from the production space if that's the case.

QBL Price at posting: 4.9¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply