wingellina nickel ore contains 50pc iron ore , page-13

Whatno, yes it is an important question.
I did some basic estimates and came up with net positive cash flow from tin of $115m in 08/09, 201m in 09/10, 211m in 10-11. Thats at about current prices.
Given market cap is circa $500m, the share price is way low on this basis alone?
They estimate the cost to get the Wingellina plant up will be about $1.7 billion. Not sure if this includes infrastructure such as power etc.
Clearly the cash flow form tin will not be enough to pay all the costs up front.
In the posts I showed how the current mining cash flow model works, with a very high internal rate of return. It looks like the profits from W at current situation plus Tassie tin could well be showing over $1billion pa difference between cost of production and revenue received before tax interest overhead admin etc. This is a very high payback rate.
They had no corporate debt last time I looked so starting with a clean slate. There would be no need in current circumstances to give too much away in seeking finance.
Having lots of tin, nickel and cobalt is about as good as it gets in the mining universe.
Given the great demand for these inputs that China is seeking, Compass (CMR) did an interesting deal with Hunan.
H finance the main plant in exchange for about half the output excluding uranium and some others form memory.
copper cobalt and some others.
I think Hunan got a pretty good deal, but Compass was not in the same rich cash flow position MLX will be in the next few years. If the money to build the plant was borrowed, it could be paid back pretty quickly by appearances atm. The cash flow from Tin would seem likely to cover interest payments till that happened so interest may not have to be capitalised.
Although it does not make me all that happy, I would not be surprised to see one of the global majors wanting in here. This deposit has three characteristics they are looking for. A major world scale deposit- long life. Low costs. Metals in strong demand.
The majors would have no problem at all funding this. BHP is particularly keen on nickel.
The more I experience this management the more confidence I have in them. I think there are those high among them who have good prior form in building up miners. Thats good.
There are many hazards and holes to fall into. One of the worst is having the banks force you into hedging contracts that end up being a big problem, but hedging is a way to guarantee part of your cash flow. There will be so much of this here if all goes to plan it may be possible if that route was followed to hedge some part but not more than half. Im just guessing.
I think your questions are useful-they are forcing me to look at other things than I have before- and anything to do with financing at the moment is tricky.
One thing to consider is that Ron Brierley's outfit is a significant holder. They are pretty good operators and I think they will offer good advice to the navigators.
Wonder what management are thinking.
If all goes to plan, this thing could be worth 2 to 4 dollars a share in not too many years time?
Id be looking outside Oz for my loans the Oz int rates are absurdly high.