re: to watko Meaningful discussion on Hc, thank you Watko and...

re: to watko Meaningful discussion on Hc, thank you Watko and acturtle as usual.
Taking Watko's points in order:-
1. The pipeline cost of us$15million obviously came out of left field, otherwise Terry would not have highlighted it as such.
Adding this capex to the us$85 million in the prefeas suggests the capex is now us$100 million.
The global risk figure for project finance is now this expanded figure. The opex savings are comparatively marginal, a 6.5 year payback is not overly attractive .
2. Project finance for a zinc development is a lot trickier when compared to a gold or copper project in my experience. Don't take my word for it-phone up one of the project finance teams yourself (but don't mention Western Metals or Pasminco!LOL). Counterparties are a lot more difficult to identify and LME hedging would knock the market pretty heavily.
Macca's involvement should not be misconstued-their equity division has a very different hat to the project finance division. The former uses client's money, the latter their own!
Maccas remains the logical choice however, as few Australian banks would consider the sovereign risk scenario in Indonesia.
For your info Watko, yes I do follow the likes of KCN, and other SE Asian regional companies such as OXR,PNA,LAF and so on. I fail to see the corollary with the likes of JBM.
3. As to the ground conditions, who is going to own the cement plant and the steel works?(for the rock bolts ,LOL).
Obviously the BFS due at the 'end of the September Quarter, will examine this situation in detail. hopefully the summary announced to the ASX will provide sufficient detail.
On current public info, the orebodies are located within a carbonaceous shale host-see the second diagram in the latest quarterly. The stable ground appears to be some distance from the orebody-nice long rock bolts? (The concrete paste and fill is more of a supportive veneer, but very much a necessary one.)
Your reference to IGO is potentially misleading given the respective mining widths, dip of the ore body, and the nature of the host rock. IGO has done a terrific job to date in different conditions.

I wish all holders good luck remembering the management of this company should never be underestimated-Messrs Allen and Wright are highly capable.
If I thought zinc with a bit of gold was an attractive investment, my money would go into Perilya for what it is worth. Do your own comparisons of the two.
Cheers,TAS