The Dodgy mine is a relatively small deposit as PROVEN by past exploration. The Dodgy mine is NOT a new discovery. It was first prospected in the late 1800's and early 1900's. It has been producing barite for quite a while, beginning commercially in the 1950's.
In 1966, Johannesburg Consolidated (Johnnies), commissioned an EXTENSIVE exploration of the mine. In 1969, they said, "...the potential annual production capacity of final product [barite] is 30,000 tons and that the life of the mine would be approximately 10 years." That was 45 YEARS AGO! The mine has been producing barite on a small scale since then.
In 1969, Johannesburg Consolidated called it "a relatively small operation" and further stated, "...it is TOO SMALL to represent a really significant investment to a company of Johnnies stature."
In the 45 years since their report was prepared, the amount of barite has declined as it was mined. Barite does NOT grow back.
In May of 2012, Alf said they would begin shipping barite in 2012. It is now 2014. Mabwe has been working on the Dodgy mine for YEARS now and they only managed to produce a measly 4k tons, not even enough for single shipment!
They seem to have given up as they have abandoned mining operations and are merely using the "story" to hype the stock. Even the last QS hype made NO MENTION of ANY production or shipments or even targets. Merely fluff about the history of the oil & gas industry and the "uses" of barite. ROTFLMAO!!!!
Looking at it realistically, the company has only been able to produce LESS than 4000 tons at a cost of almost $200 per ton! Add to that the cost of processing, trucking to Shamva, loading onto rail cars and shipping from Shamva to Beira, unloading at the pad and finally, loading onto a ship. Costs which must ALL be paid by Mabwe. Oh, and don't forget Zimbabwe's cut, which MUST be paid!
Steinbock will only pay them $105 per ton FOB Beira! That is a NET LOSS OF MORE THAN $100 PER TON!
They have extracted all the easy stuff that was close to the surface. The cost of mining will only escalate as the steeply dipping and tapering vein is chased downward.
They have been forced to cease mining! That is why NO ONE wants to buy this TURD and all the FLUFF PRin the world won't change that!
Good DD IS NOT just reciting the PRs and company handouts and looking for the good. Those things are never hard to find.
Good DD IS finding out what the company and CEO do NOT want you to know.
