I have seen the video and make the following comments based on the interview:
AC: They have cash and receivables of $35m at end of quarter.(Over $20m?)
Question: How much are outstanding borrowings and creditors?
AC: Guidance for C1 costs for the year has been reduced to $1.60-$1.75/lb.
Question: Didn't the feasibility study in 2010 (for Outokumpu)show C1 costs of $1.33 over the life of the mine. I don't see the reduction in 2012/4 even after accounting for inflation. BTW Capex in the DFS was around $50m. Does the substantial increase in capex TODAY justify increasing mine life by a couple of years after 8 years?
What is the capex and overheads for this year? Any reduction?
AC: Cannot offer guidance on results for current year because of the volatility in metal prices.
Question: Given that the cu price has been hedged up to an equivalent of one years supply, isn't the volatility reduced?
AC: They are doing additional drilling to increase mine life.
Question: Do additional drilling costs and subsequent mine developing costs justify the present value in additional revenue at the end of the current mine life?
AC: (Roseby) They have commissioned consultants to review the cost in the DFS given the changed costs in Australia, with a view to getting a better outcome.
Question: After all, the costs in the DFS are estimates - no one gets it right (eg in Outokumpu - actual costs vs DFS) . Why incur additional consultants costs when the company is not undertaking mine development by itself - leave it to the buyers / development partners to do their own due diligence. I don't expect a great increase in the fair value by doing this exercise.
AC: Level of interest in Roseby fell away but there has been renewed interest in the last month.
Comments: Hopefully the renewed interest will remain after the agm.
-------------------
BTW, with these Commodity TV interviews - does the company pay for the interviews?
- Forums
- ASX - By Stock
- latest news-talk with alistair cowden by c-tv
I have seen the video and make the following comments based on...
-
- There are more pages in this discussion • 9 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AOH (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online