current status?, page-7

I went to the EGM. Didn't really find out anything ground breaking other than that which has already been discussed on this thread, or what was in the presentation released after the PFS (or the PFS itself).

Tony did say he was surprised at the market reaction to the PFS release, and advised that the PFS was not intended to detail the entire project, but rather demonstrate that there was a viable project before intiating a DFS.


A couple of points were elaborated on which I did find useful though:

1. Regarding the CAPEX , Tony did say again that it was a conservative estimate and that $437m for a benefication plant was valued on if the plant was built in Australia. He then went on to say that they actually don't make them in Australia and that the potential Asian JV partners reckon they can have one built for about $300m. So CAPEX will be reduced there.


2. Regarding a DSO operation (Isthmus). Tony said there is definately DSO there, but so far he is a little disappointed with the quantity there. They are still drilling the isthmus so we still don't know how much ore is there at this point in time. He noted that the ore body there is a lot more difficult to drill than hardstaff. If they don't find enough to warrant a DSO operation, he said they might end up blending the DSO with the hardstaff ore to upgrade the FE percentage of the concentrate.


3. Tony confirmed that one instution dumped the stock recently. They had a 5% holding(I think this is understandable given its almost EOFY). No other major shareholders have dumped the stock. Tony mentioned that he has spoken to other major insto holders and they still see the value in the project are not selling, and are getting ready to load up further, but first want to see some stability in the SP, rather than get caught "catching a falling knife", so to speak.

Anyway, I found the above points most interesting. Hope it helps you guys too.