Mmmm, I think Errol is struggling a bit to be super up-beat as maybe the economics have disappointing him also? But the ability to get first stage mining underway on Prieska for some US$25M and cover costs/generate some equity revenue for 4 years whilst they de-water and develop Stage 2 is a positive and will buy some time to sort the big ticket funding. He again mentioned offtake funding as a common element in securing overall project funding for projects like Prieska as offtakers/smelters are desperate for concentrate feed. So maybe he does have a rabbit in the hat somewhere? Now would be the time to pull it out as we have all the information needed to allow those sort of agreements to be locked in.
One curiosity remains for me. Errol states Prieska being competitively low down on the production cost curve yet the post-tax IRR sits at only 26%. Is 26% now an attractive return in the mining sector?
I remain a hold until we get some clarity on the funding path. @walker5 - I see you are a buy - would you like to express reasons for your optimism?
ORN Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
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