cockatoo island synergies, page-3

Pelm1

Excellent post. The benefits of Cockatoo Island to PLV are obvious.

As you say Cliffs would get major benefits from PLV walking in.
It would be win/win for both companies.
The fact both companies have successfully negotiated great outcomes for each other and Cliffs are currently on the register makes a deal seem inevitable.

I like your thoughts on the ramp up to production using infrastucture on Cockatoo.

Its ready made!!!!!

It looks like the market has not made this connection to this company yet.
Intersuisse were clear on Cockatoo Island and its relevance/importance to PLV.

Re mining starting that has been my thinking.

Intersuisse said themselves PLV are targeting 2012 for production.

Theres a few things there to consider re valuation.

The Isthmus will/should prove up more DSO tonnages. As you say Pelm1, this could go straight to Cockatoo Island.

Remember too that PLV have set themselves a target for enviro go ahead 'by' March 2012.
So if we take their word on that, or their guidance at least they should hear sometime early 2012.

By that time Isthmus will have grown re tonnages (and as a result the valuation too) and as you say be ready to go re production as all that will be required in very simple terms will be the drilling and the loading of DSO by barge to Cockatoo.

What i'm getting at is that PLV may surprise re time to production re the isthmus to Cockatoo operation.
They have been proactive environmentally from early in the operation. As Tony has said here before they have done a lot of groundwork and lets not forget they are Golden Gecko winners for enviro excellence.
That just might count for something re time to production.


And underpinning this scenario is that it will be extremely economic to do this and further cut the costs on an already low cost operation.

Market doesn't get this....yet.

Any ideas on finance arrangement/end user announcement Pelm?
The company clearly have met to discuss it.