salty whats happening?, page-21

re: bfs - without feldspar Been thinking lonnngggg and hard about this one stoss.

What will fill the hole that the feldspar revenue credits will contribute?

In a word,tin and its higher revenue

Just what effect will taking out the feldspar part of the processing circuit have on the bottom line cost of the project and hence the effect on the revenue and will this be at least off-set by the high tin price?

I and I would think any financiers of this project would go cold on Abu Dabbab/Nuwebi(?) if there was not a significant drop in the startup cost of the project due to this initial dropping of the feldspar component.Cso1 mentioned in a post a little while back that the potential feldspar off-take customer was not particulalry in a rush for the feldspar at any rate(I think 2009 was mentioned).I can only take this on the word of cso1 and perhaps he/she can clarify this statement.

GIP mentions its a time thing.I cant see how this can be the only factor for them to just push the feldspar out the back door for the moment.Its more than likely a contributor to their feldspar actions but I get the impression(and thats all it is) that also the plant/infrastructure start up costs will be reduced enough to warrant this move.

If this is the case then with a smaller initial debt funding requirement due to the dropping of the feldspar part of the processing circuit,not to mention the time it would apparently take to install this part of the plant as well as the separate transportation and loading facilities at port,it should be easier for them to attract the necessary funds to get to start up.This is all on the proviso that the tin credits have been close enough being able to plug the lack of a feldspar revenue component.

And this is where the BFS comes in.

JT stated in that recent article that was posted on HC that he thought the reason market was not overly enthused by GIPs efforts was the lack of the bfs and their efforts at the pushing of this project to market.

Well in defense of GIP how can you push a project when your not even sure of just what your initial products will be.

Lets just hope this is the last turn of events as far as they have contributed to the delay of the bfs.

Its hard to think that with Lycop(currently holding quite a bit of their bfs fee in GIP script)that they would be a party to something that would make the bfs,and hence the project,weaker than it previously was.It may well in fact have made it much easier for them to get the initial funds by significantly dropping the costs of the plant and associated infrastructure.

We'll all know once that bludy bfs arrives!

Cheers d.