dewitt annual free casflow of us$40-50m?

Seems this project has slipped off the radar lately (yes I know, we are still waiting for overdue anns on Sioc, VM, Botswana, Mashala ... just wanting to change the topic for a bit) -

Given the LOM of +30yrs, projected free cash of up to $50m p.a. (although Indaba presentation revises this down to $36m p.a.), would like to know how those infrastructure solutions are shaping up. ABSA funding has been mooted a number of times - and with Penumbra, Vlak & Ferreira*/Delta all running at full steam by EOY, there should be enough cashflow to easily service debt obligations.

*assuming that the extension does go through, and I have heard nothing to suggest it won't.


De Wittekrans Complex

Key Points:

The Complex Comprises 4 projects - De Wittekrans, Knapdaar, Vaalbank and Project X

Over 250Mt of in situ resources located within a 10km radius and adjacent to major infrastructure

44Mt of Saleable Reserves

TWP Projects completed bankable feasibility study on De Wittekrans project in September 2011

Initial targeted production from De Wittekrans project of 3.6Mtpa ROM from opencast and underground

Initial development of De Wittekrans given lower risk profile and capital development costs associated with initial shallow open cast mining operation

Target export sales of 0.8Mtpa and 1.7Mtpa of domestic sales

Forecast annual free cashflow of US$40-50m

http://www.conticoal.com/de-wittekrans-complex.html

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From Indaba Preso: "Capex of US$220m reduced by US$40-60m by using existing plant and rail capacity" (will Glencore/Ramaphosa oblige us at Koornfontein, or will they try to screw us?). DT mentioned that there are a number of other miners close by with spare capacity. Vaalbank JV with Total was mentioned in 2010 - not sure what is happening there, if anything.

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Comments?


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on a side note, this is one of the funniest posts I've read on HC for a while - one that a few CCC holders might be able relate to:

AKM: "just not tickety boo" by Bedouin