AAU 0.00% 0.4¢ antilles gold limited

Earnings Forecasts, page-70

  1. 752 Posts.
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    Yes, from a risk management perspective it makes sense to get LD operational first and then tackle an Albion plant. A particularly good funding deal from the Dominican Republic, say as part of the damages claim settlement, might change the timing and risk of building a plant. If the deal results in a joint plant with Rosario Dominicana SA, then the costs and risks could be shared.

    Another consideration is if the plant is at La Demajagua instead of DR. Then the 'just few million' difference becomes US$10 million per year because of the US$6.5 million concentrate shipping costs that would be avoided.

    So I still think it could go either way, depending on how the DR government behaves and whether AAU can get additional funding easily enough. Funding and sovereign risks aside, the technical risk should be low as AAU already knows how to build an Albion plant.

    Last edited by capriccioso: 05/03/22
 
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