Regarding expectations and timing.From the report.Page 9.Delay...

Regarding expectations and timing.

From the report.

Page 9.
Delay to DFS is caused by the change in product format required to produce PRM.
This requires: Change in mine schedule (easy), changes to existing plant design, inclusion of milling and bagging facility for 25kg bags, update in shipping and transportation logistics.
Wet processing plant to be commissioned on site approximately 6 months after commencement of construction.
Additional capital will be needed to facilitate production of PRM, this is currently being costed by Primero.

Page 33.
Agreement with MSI for supply of PRM is subject to conditions including achieving commercial production in 2022.
DFS to be delivered in final quarter of CY 2021.
Origin Capital were appointed to assist in meeting requirements of BFS.

Page 35.
Completion of the Definitive Feasibility by the end of the end of 2021.

My take.
As expected. Good report.

ML on track.
DFS not immediate, maybe December, BFS to follow sometime later, any debt financing after that.

Mining activities on site to commence mid 2022. This is building roads, removing of overburden, ore mining a fair bit later.
Wet processing plant to start operations 6 months after start of construction, this will produce CRM only. Start date not given.

Previous capex estimate was for wet processing plant only, additional capex will be needed for production of PRM. Cost of bags, pallets and other consumables and importantly labour will impact opex in DFS. Not sure if there is supply of local labour for plant running 24/7.

No details on time frames for the milling and bagging plant for PRM provided. As expected, plant in design stage now.

Logistics of producing and shipping PRM in different format than CRM. Warehouse needed to store palletised product, produced at minimum of 11 pallets per hour, 260+ pallets a day, no idea how many days of storage before it can be send to port for loading. Possibly 10 days of storage on site plus rental of warehouse storage in the port for the time before ships arrive (I have not considered this). This will impact DFS.

One thing I have not seen discussed is what percentage of the selling price will be paid to Conrad Partners for helping to secure BOA. This will influence DFS.

Possible problem with the condition of achieving commercial production of PRM in 2022 in the BOA with MSI. Should not be a problem if delay is less than 6 months, solvable by offering discount on first 6 months of supply. Minor impact on DFS.

On the side.
For anyone who is not quite aware of the scale of what is ADN planning we are talking about 115ktpa in the first stage only.
This is around 2,500 pallets of product per week between noodle and bagged if offtakes for the whole capacity happen.
Designs could be simplified if strict proportions of CRM to PRM product were set in stone but this would be a very bed way to design the plant as the proportion of one to the other may be changing over time.

Yes. This means 5,000 pallets a week in stage 2.
Bring it on.