GMC 0.00% 0.6¢ gulf manganese corporation limited

Ann: Writ Received from Mighty River, page-19

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  1. 7,301 Posts.
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    Not worried about this one iota, and it seems the market is not too concerned either.

    Quick run down on where we are right now:

    Forget about the couple of downrampers recently who tried to bring up power costs being against us. As announced recently, we have signed a new MoU with PLN which leads shortly to a full technical contract for the operating power.  We are currently operating under a Construction Power Agreement.  As the major power user in Timor, we get good terms.  The number used by TripleC is that given by PLN in their initial quote.  They have now improved on that but the terms are obviously commercially sensitive and are not for general release.
    The grades of manganese ore smelted globally have been steadily declining as the high grade mines (such as Woody Woody) are depleted.  The main cost in smelting is power but it is a unit cost.  Grades in China are generally less than 20%Mn, in South Africa less than 30%Mn.  Our grades in Indonesia range from 45%Mn to over 55%Mn.  China subsidises its power but has a huge grade disadvantage.  South Africa has very expensive power and a huge grade disadvantage.  Kupang will be one of the lowest cost producers in the world having reasonable power costs and very high ore grades.
    In regards to margins on DSO sales, essentially as a smelting company in construction we are eligible to sell Mn Ore over 49%Mn that we buy from local miners and sell through our contract with Renova.  We should make around $200 per tonne.  Once we get the licence we're expecting to sell 5000-10000 tonnes per month.


    Don't let any of the downrampers shake you out of the tree whilst they come in trying to be articulate and intelligent hoping you can't see through their shenanigans.
 
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