I dont think there was anything new here that we didnt already know except for now it is out to $125M. It was $108M recently and in Mondays West Australian it was then out to $117M and now $125M.
....However, this is common and to be honest exactly what I expected and I personally would be more worried about delays and annoying potential buyers of the ore. I would rather it cost them another few Mil even from this point just to have them meet their aggressive timeline. Long term, especially at current prices the project should easily eat up any extra capex.
I read somewhere recently that there should be at least 40% margin in this project even before the estimated 10-15% increase in contract prices, and that it would be marginal using the prices the year before the 70-odd% increase.
Anyway both traders and L/Ter's should win as it should have a run short term when they actually sign a contract and also long term when they start making money.
Ive just had a few crownies after work, correct me if ive misquoted on anything here, cheers :)
AZR
aztec resources limited
