Ann: First International JV Awarded Omani Copper Mining Licence, page-55

From the Oman Economic Review, July 2nd

http://oeronline.com/news/oman-to-resume-copper-production-after-14-years.html

Oman is resuming its copper production after a gap of 14 years, with the launch of a copper mining project in the wilayat of Mudhaibi by Al Hadeetha copper project. Oman had stopped the exploration and production of copper in 2004.

Eng Hilal bin Mohammed al Busaidi, CEO Public Authority for Mining (PAM), apex body for mining activities in Oman, said, “Oman is starting copper production after a gap of 14 years, and the development confirms the economic importance of copper in the Sultanate. The copper mining project comes as a result of strong cooperation, and there will be a lot of similar projects in the future.”

Al Hadeetha copper project is being operated by Al Hadeetha Resources, a joint venture between Alara Resources and Al Hadeetha Investments. The joint venture was formed in 2011 for the purpose of exploration and development mineral zones in the sultanate.

According to Hadeetha Resources officials, the concession area of the project site is estimated at about 39sqkm, and the mning license area is about 3sqkm based on the PAM mining license. Justin Richard, CEO at Alara Resources said the total resources estimated as per international acceptable standards is expected to be in excess of 16mn tons of copper. This is one of the largest single copper resource in the Sultanate. “The project will have a life-span of around ten years, which can be extended with exploration from adjoining areas. Once operational, the project will create more than 100 new job opportunities for Omanis,” Richard said.

The total investment in the project would be around $340mn, including investment that has already been made. Total earnings from the project at current prices would be around $500mn.The government will earn around $60mn from royalty and taxes from the project.

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Apologies if this was posted earlier. I'm currently enjoying a few days away from the office and catching up on some reading. The last paragraph reaffirms that the profit margin for this project is well above the 15- 16 mil cap we currently have. Multiples in fact...so once AUQ get fired up, you don't need to guess where the share price is going.