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13/12/19
17:43
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Originally posted by chin4
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I didn't attend the AGM but know some who did. Below is my take on things.
"the insurance coverage was further testament to the facility risk management of the executive in protecting this asset"
In general, most of us rush through the finer details thinking the worst will never happen when it comes to insurance. Some diligent precautionary action there. ECT obviously went into great detail when initiating insurance cover. I think it was tbedon (poster here) who works in the insurance industry 30 years who also commented on how impressive it is how ECT handled the fire/insurance.
"value proposition of spending ~$4-$5m to produce $3m in earnings, represents a strong economic driver for proceeding with the development "
ECT are getting quotes in India to build BM. Probably cost about a quarter of Australian quotes. Hopefully this time next year BM is built & earnings are heading towards $3m.
The supposed $300,000 pa ECT India CMD, Shri P Selvakumar in reality is not even claiming expenses let alone a $300,000 sales. By all accounts he is old school/old fashioned & very ethical. He won't accept any monetary help of any kind until a deal is done. It's a VERY unusual situation & it obviously works extremely well for ECT. He is not even on a say $20kpa retainer where he could stall for years. If he exhausts all his contacts/leads without a deal then imo we can safely say ECT techs are not as good as we all thought. However, that is not the case at this point. He worked at NLC for nearly 40 years & rose to be a director. This guy knows NLC inside/out & he knows NLC are still very keen on ECT. He also knows the Indian steel making scene inside/out. Apparently at the AGM it was mentioned he is talking to 4 groups - a mixture of publicly listed & private groups. We have seen the SAIL articles so I assume they are one of the 4. So, Mr Selvakumar ticks all the boxes in our opinion. Brilliant.
Most ECT holders no doubt wonder from time to time - "If the tech's are so good, why are the "big boys" not jumping at them?" Well, until June they were. NMDC & NLC were solid. NLC still are solid & an ex NLC director is betting a NMDC replacement is on the way. Also, I remember last year the below:
Steelvia forum Dubai September 2018:
" Ashley Moore will be discussing Topic: Coldry & Matmor.
Ms Aditi Tarafdar will be discussing Topic: Coldry & Matmor Head Of Department (Process Metallurgy & Ferro Alloys), M N Dastur & Co, India"
Ms Tarafdar went to Dubai to present on Matmor. Dastur are amongst the best of the best regards steel. She didn't go there to present for fees. Does anyone think her professional reputation is up for sale? Ms Tarafdar, like Mr Selvakumar obviously thinks Coldry-Matmor has legs.
Market cap is about $10m. It's going to be interesting to see where that is in a year. Imo if there's no India binding deal by say July, it's over for India. Personally I think Selvakumar will deliver. NMDC were keen for a long time & we know why they left.
The Chairmans address reads very well to me. There is a solid plan there so it's up to ECT to follow through. If an Indian deal kicks off next month, then ECT need to put the blinkers on & execute the BM business strategy regardless. BM is a unique opportunity to showcase/scale up Coldry in the real world. It can only strengthen ECT's hand in any negotiations going forward.
All imo...tick tock...
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You state ECT are getting quotes in India to build BM.Are you referring to the Bacchus Marsh in Melbourne.
What sort of plant are we getting quotes for in India?From memory a Coldry CommercialDevelopement Plant would cost around $30-40 million if built in India.
Why would we have it built in India?
I thought the whole process was to build a CCDP in India and if proved commercial have someone(NMDC to finance the building of a Commercial Matmor Plant in India(from memory this was going to cost somewhere between $200-300 million dollars.)