ASX101. INTERESTING comment. I have tried in the past to sort out the nature of the relationship. They both hold IP that in combination make up TIVAN.
THE May 2016 cooperation agreement gave the slightest insight about the co dependance. Going back its c 2010, TNG started the metallurgical process and scoping studies that evolved into TIVAN. SMS came onboard in 2011 but we were not told of their input until 2016.
In May 2016 the parties agreed to joint marketing and promotion of TIVAN to third parties with arrangements for split up In the Mt Peake Darwin Refinery didnt get going.
Most of the cutting edge developments , electrolyte production in 10/16, significant TIVAN refinements in 2016 (reduced CAPEX) 2018 ( TiO2 pigment technology break through) and TIVAN flow sheets completion ( 11/17 DFS update) have SMS fingerprints all over them.
The first announcement including SMS was 2/16 SMS's roll was not only revealed but also given significant TIVAN optimisation and engineering responsibilities.
Now we see that extended to the Mine Site Concentrator Engineering and Design which previously Como Engineering were lead consultants , (3/18) and also oversaw the concentrator optimisation for the updated DFS.
Also included and in the TIVAN plant is the Titanium pigment plant. This had previously been signaled as likely to be under a BOOT arrangement. The 2 November mandate states the pigment plant (to be developed in collaboration with its nominated sub contractor Ti-Cons (9/18) which means the expanded mandate would mean that the Mt Peake Project would be "fully engineered , supplied and potentially constructed by" SMS
SMS's involvement has grown from being hidden in the shadows to now Engineering and Design, overall costings , component supply, and possibly the construction of the Mt Peake Prohect in totem from concentrator to end products.
SMS clearly want this "show case" Refinery to get off the ground and as of now a huge swag of the construction work could end up being undertaken by German Entities. The updated DFS envisaged potentially all construction to be "pre -manufactured modules" (from countries with attractive labour costs , ie Asia, unless Lenders "ECA" required otherwise. Well reading between the lines they do.
When we look at the Ti-Cons announcement, the Titanium pigment marketing announcement with DKSH and bring in the recent SMS announcement it is also possible that titanium pigment production is Going to be back in TNGs TIVAN plant rather than BOOT araingment. That will no doubt increase CAPEX by c 220 mill being the expected cost of the pigment plant.
II all suggests to me that finance coukd be in site and the lead financier has set some terms , including preferred contractors and subbies as well as requiring bottom line costings. If so I'm hoping that SMS have all this from the years of work they have undertaken including the flow sheets for the 2017 DFS update.
Could be a spectacular end of year , or is that being to optimistic.
I'd be interested in some views on the above. Might make me sleep easier.
