arthurglaso, the first 300 mill will be sufficient for cashflow to start to match spending, so they'll be self funding for the balance of phase 1 at that stage for the final $500 mill mentioned in the article. You'll also find that the RIV management are very good scavengers and if there's any equipment they need they'll not only find it but at cheaper prices than Sedgman have allowed for. With projects being put on hold around the world you'll find RIV management very active at saving costs. The reported restrictions on the rail will end up being far too conservative as the capacity will end up being far greater than the Vale and RIV allocations so far sugeest. It's not a Meccano or lego set!!! There are others such as sugar firms who want allocations as well, which shouldn't be a problem. Came across a sugar company that has been barging up to 80 tonne at a time down the Zambesi for the best part of the last 80 years and they have to transport to the river, whereas RIV will be much closer to the river than they are. As for the port at Beira, the intention is to have a loading facility about 800 metres off shore, thus bypassing the port for the barged coal. That also allows for deeper than Panamax ships if necessary.
RIV Price at posting:
$2.19 Sentiment: Buy Disclosure: Held
