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The Cambridge Dictionary defines synergies as “the combined...

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    The Cambridge Dictionary defines synergies as “the combined power of a group of things when they are working together that is greater than the total power achieved by each working separately”

    That is exactly what I see happening at NAGs so that the Cost of Producing (or storing) each Product is reduced by the activities of the other.

    The Gravel, Sand and Road Base don’t need “winning”. They are the consequence of previous Gold Production, so Stage 1 of producing them is already paid for and a stock pile of 10m tonnes exists via the HLP & the 2 Over Burden Dumps.

    The Gold Production won’t need to pay for the clearing of the Heaped Leach Pad, as its Rock, Gravel etc gets sold off by the Quarry, paving the way for Gold Production.

    The PASS can go into the 2 Huge Water Filled Pits that already exist and were paid for by previous Gold Production.

    Sand production will have Clay as a By-Product, paying for the removal of the 4-6 M of clay west of the West Pit and generating revenue in the process.

    And all of these have the potential to provided Back Loading for other Products eg PASS producing “back loading potential” for Gravel, Road Base and Sand.

    Imagine NAGs negotiating with the winning Contractor for the Metro Rail 1 and throwing in the back loading of Road Base or Gravel at a Price Cheaper than anywhere else (because they can)

    That’s what I like about NAGs. It may sometimes mean things have to be done in a certain order but it means profitable enterprises. Gold for example will be cheaper to produce if the HLP is partially cleared by being sold off as Gravel & Road Base etc, rather than cleared without selling (relocating).

    It may mean a wait for Gold Production but a profitable one, when these synergies come together. I think NAGs will very quickly go to Multiple Revenue Streams, simply because each product “opens the door for another and pay the entrance fee at the same time” and that’s what I call synergies.
    Last edited by JetBlue: 13/02/17
 
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