construction

What is worrying me is the construction dollars spend rate required to get the project into production by the end of this year.

Assumptions:
1. Initial project capital requirement $68M
2. Capital spend so far $9M (Blackrock notes drawdown)

Remaining capital spend required $59M.

Remaining time to allow production this year (by 1st Dec) is 6 months.

Spend rate average is nigh on $10M per month every month (most projects run a bell curve of dollars spend). For the size of the project and the number of work faces available I would expect PEN will be struggling to spend this quantity of construction dollars every month, unless a considerable amount of the piping and electrics are plug and play (assembled in factory and shipped to site as modules).

I would be very interested to see an abbreviated construction programme from PEN showing what Gus keeps advertising that PEN is on track for production in 2014.

I remain to be convinced. DYOR.