@ asb83
Unlikeyou, l am pretty excited about the progress of the SDV project YTD. Maybe, Joe Lowry can do a site visit / podcast and talk to Michael Nelson the Project Director.
Inrelation to funding well…
1.Whilst the headlinenumber in the DFS is a cool $474M USD. That includes an at risk contingency component of $43.1M for 10%. So the true cost they’ll be working towards is $431M.
2.If you take-awaythe optional potash circuit, you get to $403M.
3.The project startedin Q4 2018. Capex spend to June 19, should be between $20-$30M. Therefore remaining spend should be ~$380M.
4.Let assume the value engineering adds no savings, however they remove all upside risk.
5.Argentina’s pesocollapses against the USD. In August last year it was USD $1 to Peso $27. Now its USD $1 to Peso $41. The punchline is, theUSD is getting 50% more bang for its buck!
https://www.bloomberg.com/news/articles/2019-03-26/argentine-peso-seen-avoiding-collapse-after-hitting-record-low
Here is a 11 seconds video, of what you call a white elephant!!
https://galaxylithium.businesscatalyst.com/media/downloads/AGM%20-%20Sal%20de%20Vida.mp4
For those interested in the DFS operating cost, estimates are based on an exchange rate of 20.5 Argentine pesos to one US dollar.
My question for Tuesday on the GXY bridge will be: Now that the peso has collapsed 50% against the USD and stabilised. Have you had the opportunity to estimate the benefit to SDV?
GLTAH
