What the .........!, page-24

First 24 Last

Share
Profile

Follow
healyn

5,453 Posts.

21

11/03/15

15:40

Post #: 14896773
Share

Originally posted by Harry3539 ↑

Extract from Argonaut Report P20

"With current production rate of 8 TJ/d, we forecast that the Alcoa pre-payment gas commitment will be extinguished in September/October 2015. From then, gas sales plus condensate sales are expected to produce cash revenue of approx. $24m per annum at assuming a condensate price of $55 USD/bbl, gas price of A$5.00/GJ to Alcoa and A$7.00/GJ uncontracted; and exchange rate of $1 AUD = $0.84 USD."

The 2nd Tranche of 10,000tjs will be a fixed contracted price (about 3.5 years). The price is a big secret - may be a hedged price over this period,could be fixed and adjusted for inflation, could have ...? My opinion is that $5,000/tj may be a bit light on. Anything produced over the contracted requirement can be sold on market.

Selling prepaid to Alcoa to repay the ERM loan would land you in the same position as we have been in for the duration of Tranche 1. I would strongly believe that repayment will come out of the sale of the gas plant (North Red Gully willing) and any top up debt or equity. EGO will retain all reserves and the gas plant in the farmout process so they can maintain cash self-sufficiency.

My Opinion Only

Expand

Exactly Harry. Why would anyone want EGO to tie themselves up to the same arrangement as we are now. Nowhere to move and can't fund a drill.
EGO has 2 years less 120days to tell ERM their loan will be repaid. Why waste this opportunity this early?

EGO Price at posting: 0.6¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

SNG

Siren Gold boosts antimony resource by 66% to 14.5Kt at Auld Creek, NZ

WR1

Winsome scoping study proposes low-cost operation for Adina lithium project

WMG

Western Mines identifies 2 high-grade zones at Mulga Tank in WA

PTR

Petratherm adds $1.6 to the piggybank ahead of SA titanium drilling program

ALR

Altair Minerals hits high-grade copper and gold at Wee MacGregor, QLD