At the present time, whilst we have had an increase in the resource estimate to 1,108 million tonnes, stated reserves still sit at 346 million tonnes i believe.
According to Hedley they will be seeking long term financing over 25 years to pay for the project.
The capped mining/extraction rate is 45 million tonnes per year.
Thus far we have approximately 7.5 years of production based on proven resources.(346/45)
Based on the fact that we are seeking long term debt over 25 years, we are currently about 17.5 years short on reserves to pay back the debt.
I dont think we are in a position to obtain short term finance (equity issue or deferred debt) until such time as their is a substantial increase in proven reserves.
Any possible defacto lender/investor is going to make damn sure that their are sufficient proven reserves before investing in the project.
Does anybody have an idea how long it will take to convert the updated results in to reserves?
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