To an extent, it is confirming what was already flagged, but it needed to come, and the confirmation will keep the banks and financial backers happy.
I take a different view to others, in that the Sept qtrly results are critical. If they confirm that Kipoi at or above nameplate, that the cost of production is as forecast that will provide great comfort to the market. Be warned that it won't happen after the Sept qtr, rather, the market will be wanting to see consecutive qtr results which bed down that the plant can operate at forecast cost. No different to a business or individual that borrows money, in that the lender wants to see a sustained record of revenue / expenditure and free cash flow. 3 qtrs or by March-15 should confirm this to the market.
Whilst this period seems boring, these tick in the boxes by a company forecasting, then meeting forecasts gives the market surety. Surety is what attracts potential investors, when the company can spruik that they did what they said, build up the cash balances, and start servicing debt.
Interested by the delay in Geca aquisition and Lupoto PE (mining license), but not a surprise to see govt, particularly one which has constitutional changes / elections / ebola on its plate to deal with.
gltah
If Gecamines blocks the sale, all this means is that TGS is fully funded to commence Phases II and III of the SXEW, or that we will have up to a 55kt cathode plant pumping at the 1st qtr 2016. Either way its a win / win.
gltah
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