The offtake is one aspect that definitely needs more scrutiny - how can we vote for this scheme without continuous disclosure - that alone is enough to send a letter to asic and firb about shareholders concerns - i wouldn't be surprised if management minions read these posts.
but the contradiction the offtake and the announcements to date regarding best value towards shareholders holds concerns too. Its reduces chinese policy risk yet didn't quantified those risks in respect to the offtake agreement for shenghe to make the scheme offer.
essentially this is the issues but the contradictions are also there... just not expressed
chinese government may stop imports from tanzania if it changes policy that is currently under review - this will affect an off take agreement with shenghe, who might not be able to take the ore if restrictions are placed . (if this happened then what would tanzania government do? take the mine license away and china would be left with exposure to other countries taking a shovel ready project on.
tanzania may approve this scheme - and would also be still at risk of chinese policy changes - in effect stop the mine from selling its ore to shenghe who is still at risk after paying for the scheme to not able to mine this . which would result in the license being taken away and provided to a competing country.
looking at those combined risk - id call chinese bluff and this is exactly what it was intended to do and that is scare holders into selling this off cheap.
i don't think Tanzania would be that capable of taking away this licence based on the lack of progress when considering the issues to date and the good faith that peak has contributed to the project to date.
early works hydrology works further optimisation - including enlarging the site area (bureaucratic approvals which creates delays) poor ore prices - comparable to any other companies wanting to build with poor economics. continued drilling for other minerals on the ground - fluorspar and phosphate numerous community good will projects - schools - police quarters... currently seeking to finance for to pay compensation schemes (teaside sale)
to assume that the company is sitting on this lease without progress doesn't hold in my view
there was a recent court/ arbitration regarding a company in tanzania that lost its mineral license.
PEK Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
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