good news, none of this sale talk!
time to build and mine!
$220m free, YES, FREE CASHFLOW per year in phase 1. ENOUGH TO FUND PHASE 2, WITH HALF A BILLION FREE CASHFLOW!
Whats our mkt cap again?
FUNNY HOW WHEN STUPID DINGYI MADE THEIR OFFER, THEY PITCHED IT TO US AS "HOW WOULD YOU GET THE $2BN IN FUNDS TO BUILD YOUR MINE".....FAST FWD A YEAR, WOW...WHAT DO YOU KNOW.....IT WILL ONLY COST $900M NOW...!!! IRR OF 24%, NOT OUTSTANDING, BUT THAT WOULD BE BASED ON CURRENT PRICE OF POTASH..
BRING IT ON AND HURRY UP.
CHART THAT SMURFETTE.
http://www.africanmining.com/news.php?id=2772
Elemental Minerals Limited has released the phased Implementation update for the high-grade Kola sylvinite project located in the Republic of Congo.
The company expects to start production of phase 1 in 2018, which will ramp up to phase 2 by 2022. Phase 1 has an unlevered after-tax net asset value of $1 836 million and internal rate return of 24.20%. Capital expenditure for phase 1 has been revised down from the initial capital expenditure estimate, reducing by 51% to $908 million.
Elemental Minerals expects to have an average after tax free cash flow of $220 million per annum during phase 1 and $550 million per annum during phase 2.
The free cash flow from phase 1 will enable the company to self-finance phase 2 capital expenditure.
The company has received expressions of interest from potential partners to build, own, operate and maintain components of the project to reduce the Life of Mine capital expenditure by $418 million through contract mining, material handling and transhipment.
John Sanders, Chief Executive Officer of the company, commented, “We are extremely pleased with the outcomes of the phased implementation study, as it significantly reduces the start-up capital requirements for the project. The projects excellent fundamentals are underscored by the potential for phase 1 free cash flow to fund phase 2 capital requirements. Initial project equity requirements will be further reduced through the appropriate mix of debt and equity and the company is in advanced discussions with potential partners in relation to the funding of the equity component. Phasing is a tried and tested strategy that has been successfully implemented on a number of other large projects.”
Elemental Minerals is an exploration and development company with potash operations in the
Republic of Congo.
