Just got back from a T20 investor presentation (I'm not T20 but was invited by one).
I'll try to give you a brief outline of what I learned.
Please do your own research and do not take anything as investor advice.
Much to Hamish's annoyance, the recent price fluctuations is because a major shareholder has decided to do some trading and play the market, this will probably be reflected in any major shareholder updates. If you are a savvy trader you could probably take advantage of this, however you do so at your own risk as expect some positive announcements regarding progress soon.
All the below ground foundation work at Kupang has been completed, this was delayed by 5 weeks due to heavy rain. Steel fabrication to hold the furnaces/cranes in place is now ready to progress and will be ready when the furnaces arrive so that as to quote Hamish "they slide right in".
They are expected to arrive in Tenau port by late April early May and to be ready for production in August.
There was a delay with the paper insulation in the transformers drying out and Hamish made the prudent decision to totally refurbish them and they now come with an as new warranty.
The delay with the smelters leaving Durban is because there have been a few issues getting some Indonesian custom officials to SA to sign off, however this should be done soon and will expedite the process once the smelters arrive in the port at Tenau. They will take about 28 days to arrive via Singapore. They are pretty much packed and ready to go once signed off by customs.
He couldn't give timing of when the 2 smelters will be extended to 4,6,8 and even 10 but did say that future smelters would be purchased brand new, so we won't have similar delays. I understand it was cost effective to start with refurbished ones.
Electricity cost 8.6c for the next 4-5 years and was below the 10c that they did their feasibility on so more profit.
Additionally the price of Manganese has gone up so more profit. Hamish believes the stars are aligning in this regard.
Due diligence on the mine purchase is almost complete and things are looking very positive for it to proceed. Cost of mine as I understood it is around $1 mill. They are looking at another 6 or 7. Purchase of the mines will guarantee against being beholden to price fluctuations by local miners.
He mentioned something about producing Manganese flake where there is even bigger margins. I'm not technical so didn't fully understand that.
DSO is still on the cards and Hamish admitted that there have been unfortunate delays, but when it does come through it should run for about 4 years (unless the government extends it which they have apparently done on previous occasions). The DSO will run in conjunction with anything Gulf produces if and when it happens.
Below is a close up of the foundation work already done at Kupang. (Top pic) This is for 2 smelters only and will extend to the right for the next 2, and again for the next 2 etc.
Bottom pic shows that foundation work in situ. The whitish sandy patch below is where the Manganese will be stored prior to smelting and the finished product in the area behind the foundation work.
They will eventually build their own port where you see the water at the top of the pic, but this is a few years off yet.
The main road is at the bottom of the pic.
Power station next door in blue.
Hope this helps with your investment.
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