General discussion, page-96

re-posted to discussion thread

Little chance of MRQ getting a JV for obvious reasons. Less obvious reasons is that the window for funding new mine developments is going to rapidly imo. SFX announced a JV today, STA announced $150M NAIF funding gift which makes it very likely they will get funded in the near future, and BSE are ticking along to being self-funded for the equity required to build Tolliara. After three +30 year new mines are up and operating that is the supply deficit filled for many years to come... development window closed. As with Corrdior 1 which was first drilled during the 80's, these large deposits can kick around for many years before all the ducks liner up for funding.

Speaking of Corridor 1, why would the Chinese want to JV or develop MRQ's inferior Corridor deposits when they have 6B tonnes at almost 7% THM and better assemblage? At 30Mtpa production rate, that's 200 years worth of similar products coming out of an already built (though not yet expanded) Chinese owned mine. The world only has so much room for that type of product and it's all coming from Corridor 1 for a very long time to come. Nobody wants to fund a large amount of capex for more of the same product at higher operating costs, even if the project was 'economic'. Not to mention that it's not a good idea to have too much prosecution in one African country... sovereign risk and all.

MRQ requires 10% THM with the current assemblage to even get the 2:1 revenue:cost part of the cost curve SFX, BSE, STA etc are to be considered a possibility. Beyond jumping that hurdle, one needs a supply deficit window that justifies developing a new mine, and that window is closing as I write.