the plant requirement appears to be basic- a SAG mill plus the 'cons', concrete, conveyors, and concentrator. Other than the concrete any should be available from the global providers subject to long lead times-2nd hand maybe if the right one is available (have no idea).
All of these items have gone through the roof in terms of cost over the past 6-12 months, 30% plus (just look at other advanced mining projects around the world completing developments of late).
This has put a shiver through project financiers-phone up Maccas, ANZ etc or a consulting mining engineer.
Suitable IRR's? Well what has been disclosed publicly should be ok-even though 80% gearing on the whole project cost with only recourse to half the project is pushing it without World Bank type support. Of course there may be some cracks in the assumptions that we have not been advised of to date.
Reliance on the Egyptian Government retaining its subsidies to diesel capping it at US9 cents per litre may be under pressure.
In summary the plant is comparatively standard, its costs would have gone up significantly since the BFS was done, disclosed IRR's should be ok if plant costs can be controlled (eg second hand SAG mill),probability of gearing to 80% is not great, and project financiers are not rushing the project-they have already delayed details in this regard and will have to do so again if no action by Thursdays promised deadline.
Sorry, not on my 'to do' list!LOL
Cheers,TAS
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