To this extent BS is correct about Bankable Feasibility Studies:
The ?bankable feasibility study? is not a guarantee that a mining project will produce a planned outcome. Further independent review is advisable, if not necessary, to test and validate strategic targets, directions and goals.
...and from this link where you can get lots of gory detail http://www.pdac.ca/pdac/publications/papers/2001/pdf/Johnson%28T-17%29.pdf
and note, the value of a BFS is proportional to the professional credibility, track record and independence of the preparing party, and even better if signed but Conditional only on finance being approved for the major cost contracts exist. ....
The term ?bankable? feasibility study initially seems to have an added ring of veracity over the more mundane phrase ?feasibility study?. Adding ?bankability?, after all, seems to imply that the study is like money a party can take to the bank. Unfortunately, the term is misleading. As will be shown below, a lender would rarely accept a study prepared by a borrower or the borrower?s consultants as the basis for financing a project.21 At the very least, the knowledgeable lender, experienced in lending to mineral projects, will require that its own consultants and internal research departments review the study. The lender often then requires the parties to augment the study as support for the lending request. One can argue in good faith, then, that there really is no such thing as a ?bankable feasibility study? except after the selected financing lender prepares or approves one.22 In short, it would be far less misleading if the term were ?Bank-Approved? Feasibility Study.
In this regard, the standards set by such reputable engineering firms as Pincock, Allen & Holt, Behre Dolbear, MRDI, Davy McKee and others for a ?feasibility study? should establish sufficient quality and technical standards to produce the desired level of reliability.23 Parties need a certain level of technical standards and reliability, not the vagueness implicit in the term ?bankable?.
NKP Price at posting:
45.0¢ Sentiment: Hold Disclosure: Held
