SYR 3.77% 25.5¢ syrah resources limited

Zooming in on satellite imagery of the road North from Namapa...

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  1. 247 Posts.
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    Zooming in on satellite imagery of the road North from Namapa (80km) shows it to be sealed but with poor maintenance and many short sections where the seal has been washed or worn away. Clearly roadworks are needed to improve the surface with the increased traffic that is expected from the Balama project.
    Since Syrah have contracted the transport to Grindrod I assume the quote would have considered the route and quoted freight rates accordingly. Whether the Cabo Del Gado provincial road authority already has plans to repair the road or whether this is a negotiation that is ongoing is of interest. Will a contribution be required and if so who from? Although Syrah is clearly a stakeholder, the primary stakeholders would seem to be Grindrod and the relevant road authority...
    I take comfort from:
    - The road section, while in poor repair was constructed as a sealed road and requires repair rather than complete upgrading
    - The section in question is contained in one province, Cabo Del Gado, which will receive many economic benefits from the Balama project. i.e. They should have economic motivation to be supportive
    - The contracted transport/logistics rates from Grindrod are lower than estimated in the feasibility study.
 
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