re: Ann: Implementation of Abu Dabbab Alluvia... Good positive...

re: Ann: Implementation of Abu Dabbab Alluvia... Good positive action at last!

Some short term cash flow would be extremely welcome.

The NPV estimate looks realistic at US$7.3m for the base-line project.

So the 45% GIP attributable would be c. US$3.285m (not sure where their estimate of US$6.6 - 6.8m comes from!).

The smaller screened ore that they highlight would have a current in-situ value of c. US$20.5m and the marginal (-20+10 mm) ore another US$1.7m - which given the current market for tin, might end up being worth processing to extend the project life a couple more months.

But for the stated base line case, assuming c. 70% payable for tin-in-concentrate the possible revenues accruing at current Sn prices could be c. US$14.4m.

After deductions for CAPEX and contract costs it looks as though the baseline project could flow c. US$8m (in line with their baseline NPV).

So all-in-all, well done GIP if you can get this off the ground (no pun intended!).

The overall project size may be relatively small - but it would show real intent to finally garner some revenue from the stalled Abu Dabbab license area and once started who knows where it might lead us !
CPDLC