I appreciate your posts because they encourage me to dig deeper, or refresh topics from 12+ months ago, and reassure myself that this investment isn't as dire as you want me to think it is.
Referring back to the Timer Smelter Study - the coking coal will be imported from mines in Kalimantan and barged 1100 - 1200km to Tenau port and the limestone will be sourced from a nearby local quarry in Kupang at (then) costs of approx. US$2.5m and US$0.2m p.a., respectively. These figures assume 2 operational smelters and production of 30ktpa of FeMn alloy, and still give an estimated annual net operating margin of over US$20m.
I suppose one of GMC's biggest advantages is its proximity to port - less than 10km. It makes it far more practical to import materials from nearby islands, and also export its production.
I also hadn't realised until now, but if you combine their wealth, the brothers behind PT JTS are worth US$1.9b, making them the 17th richest people in Indonesia. That is powerful backing to have behind a project that they will soon own 25% of. I find it very difficult to believe that these locals would invest A$15m into this project unless they knew it was a feasible and lucrative operation. I would trust their local knowledge far more than what any of us on HC are able to find online.
GMC Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
