There is also an interview with the Exxaro CEO on that page. He talks about exporting as early as next year using the existing rail and port at Pointe-Noire. I'm finding it very reassuring that there seems to be a focus back on using the existing port for near term production rather than thoughts about building a new port, rail to that port etc, as this would significantly push back production. Personally, I think the time to consider new ports and extensive rail upgrades or duplications is after we have an initial operation up and running and cash flowing into the coffers. Our expansion can then be funded by this cash flow rather than needing to raise capital (i.e. dilution), take on debt, or have to give up part of our project via a JV funding arrangement.
The whole advantage of EQX was the existing infrastructure. It would seem counter-intuitive to start looking at building new ports and rail to that port, as this strategy would mean CAPEX increases and we begin to lose the advantage we had over other IO hopefuls in the area.
Onwards and upwards. Looking forward to Mayoko maiden JORC, Badondo initial drilling results, further met testing, and an announcement regarding the tender process commcencing for the detailed port and rail feasibility studies being implemented. We really need those studies up and running because after we prove up that JORC, the next thing we need ticked to progress the project is those studies being done so a decision on the project parameters can be made.
EQX Price at posting:
$2.04 Sentiment: Buy Disclosure: Held
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