"At this stage, our best estimate for production during the year is one million tonnes from Santa Barbara. Santa Fe has informed us that they expect production of between 500,000 and one million tonnes subject to equipment deliveries and installation. Therefore, total iron ore sales are expected to be 1.5 million to 2.0 million tonnes in 2008.
For 2009, an aggressive expansion plan for 2008 is being considered to utilize the environmental permit of 3.9 million tonnes of annual production for Santa Barbara and 1.5 million tonnes of annual production for Santa Fe."
Since the first paragraph is referring to an estimate 1 million tonnes of production from Santa Barbara for 2008 (approx 100,000 tonnes per month), the reference in the second paragraph to "an aggressive expansion plan" "utilising the environmental permit of 3.9 million tonnes of annual production for Santa Barbara and 1.5 million tonnes of annual production for Santa Fe" is most probably referring to the AGM Presentation dot point:
"Sept 2008 – commission Mariposa, Mirador pits to expand production to 3.6m tonnes per annum"
Consequently, the September Presentation dot point:
"2009 expansion will be 7.2m tonnes from Santa Barbara 2.8m from Santa Fe"
probably relates to the AGM Presentation dot point:
"June 2009 – commission two more pits for production expansion to 7 million tonnes"
Therefore, it appears there are also plans to expand production at Santa Fe from 1.5 MTpa capacity to 2.8 MTPA capacity sometime in 2009.
Anyway, since you mentioned the 2 October announcement, I decided to look it up and reconcile the various statements. However, I think all these prior statements from ADY will be superceded in the near future with the demerger documentation.
I agree with you, I think there will be delays in the planned rampups due at least to delays in having equipment delivered on time. However, it is still interesting to know what they are aiming for before the effects of these delays.
Regards
SP
ADY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
