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clock Created with Sketch. 18/12/14
18:24
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Originally posted by Max Value
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Great Question Burnett. Some of the motivators to consider may be:Mining & Processing geographical Synergies . Cupric have immediate synergies because of their purchase of Canada's Hana Mining in 2013 and DML's Boseto operations would enable them to commercialise those resources straight away. MOD (ASX) may have some synergies as well and are reporting very promising resource results, but I suspect are a little too far away to garner any real synergies from DML's assetsConcentrate Synergies : DML's higher grade concentrates could be a great sweetener for other low grade concentrate producers to lift their average concentrate grade into the commercial zone. This synergy would need DML to continue operating, so in addition to whatever they would be prepared to pay, they would need to be cognisant of stumping up the USD90M to develop the underground mine.Smelter Synergies : DML's higher grade concentrates could be a great sweetener for smelters to help them lift their feed grade. The Botswana Consolidated smelter is 630km by road, the Ongopolo smelter in Namibia is ~800km and the Eiffel Flats in Zimbabwe is ~1000km away.Immediate Access to a Copper Producer : Any copper producer facing significant shortfalls in production over the next year or two could view DML as a very cheap 'filler' to help them through the lean period, which they could flick at a later date.involved in the development and management of mining resources projects, primarily copper and cobalt deposits located in the Democratic Republic of Congo and Zambia within the Central African Copper Belt ";
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And here's some "Left-field" thinking: Maybe the JV partners in DML's Dikoloti Nickel project have actually uncovered something substantial which has not yet been announced! So add The Japan Oil, Gas and Metals National Corporation (JOGMEC) and BCL to the list of potential acquirers. " If BCL are able to convert the prospecting licences into mining licences under applicable Botswana law " they will become the operator.
