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2.9¢ speciality metals international limited

I'm s I'm sure Mitsubishi still require tungsten concentrates,...

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12/03/18

11:03

Post #: 31683316
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I'm s

Originally posted by jas626 ↑

"It indicates that the Mt. Carbine project outline includes Capital requirements of $55 million dollars. That's a lot of CR right there!
Can anyone tell me how this project is going to come to fruition?"

this is actually a great question to be asking, here is what we do know, I'm sure by mid march/late march we will have more information to go on.

firstly we know SEI has
- a tail retreatment plant already in operation
- a stock pile
- an open pit
having all this in itself is a big cost saver
we also know, a lot of the time consuming ground work has also been completed and ready to go, such as these

- Environmental: Environmental Authority for EPML 00956913 issued.
- Bonds and Permits: Financials assurances in place. TechnicalWorketailedequipmentlist,Operatingcosts,FinancialModelling,Jigging tests and Ore sorter tests confirm mineralogy similar to Pit ROM Ore.

here are the financials to break down
capital cost $55 million
-production is 2 million metric tonne units @ sale price of $290 a unit, with operating costs of $130 a unit
so 2 million x $160 a unit after costs = $ 320,000,000 over the 10 year mine life I believe
so that's 32 million a year profit, hence the 1.5 year capital pay back period
32x 1.5 = $48 million.

of course taxes etc need to come out, but that's a pretty basic snap shot,
now the off take partner in question is Mt carbine quarry's, been operating for 20 years

Has a stock pile of mined rock that has been processed through an optical ore sorter amounting to~6Mt,plus access to the mined rock in the Low Grade Stockpile (~12Mt),of which approximately 90% will be available for future quarry feed after processing by Speciality Metals
now the important part of the presentation was this bit

"Material can be drawn from this stock pile to sort,crush and screen as required to fill orders for local construction projects and maintaining council and state roads as well as remote communities"
this is where the cash flow can start coming in asap and this part

The quarry will also provide an invaluable source of cash flow from the existing quarry business. The associated quarry infrastructure will also be of significant benefit in the development of the Company’s future mining operations

- so imo they don't need to spend the 55 million up front to start receiving cash flow as it sounds like Mt carbine quarry already has the plant in operating, as they have been operating for 20 years already, they will most likely pay SEI for the tungsten and use it thru there own mine, at least that's how I'm seeing it.

either way should be a good positive for SEI.

originally Mitsubishi was going to put in a 15 million dollar investment but the price of tungsten crashed to $145 a tonne, given the operating costs are $130 a tonne there was no profit margin and Mitsubishi pulled out of the deal, but now with the tungsten price around $290 it completely changes the game with clear profit margins. at the time Mitsubishi was interested the SP was around 20 cents.

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I'm sure Mitsubishi still require tungsten concentrates, they have done their due diligence on the feasability study, all they need now is a management team they can trust.

Russell has to demonstrate he can deliver on his promises, Mid March imo will be his test.

I have watched and been a holder for many years and I'm afraid i am still not sure we are being told the truth, but everyone please remeber this is my "emotional scar" based on the last six years of Russell's leadership.

imho the stock is still good and I am "living in hope" that all progresses as promised.

Still no sign of a new MD with tungsten mining experience?

DYOR

SEI Price at posting: 3.3¢ Sentiment: None Disclosure: Held
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