Actually I heard the social visit was postponed by the agency until next week. The company used the extra weeks to finish the MPO for aggregates to "kill two birds with one stone." The renewed emphasis on aggregates is actually good news, as aggregate mining will raise early funding.
The following is from the US consultant's report to the company:
Financial Estimates
• Mining contract for Year 1 while operation achieves steady state. Many underutilized coal mining contractors are available.
• During Year 1 consider mining equipment lease/purchase going forward. In the order of US$1.6 million. It may also be possible to do this jointly with the mining contractor, as well as bank loans including Exim Bank.
•A 40% devaluation of the Peso to the US$ make in-country costs relatively low. For the first few years it may be best to reinvest profits into expansion or other opportunities to make up for the shortfall in US$ conversion. For any future coal exports, revenues would be in US$.
•Initial startup cost estimates await the consultant report. I think a few 100,000 dollars would be needed to pay for the Report, get site prep & plant setup completed, and first deliveries to client, before payments are received. This cost estimate may be lower, given the exchange rate.
• Rough estimates of revenues are US$ 20 million (4 year minimum) with Opex and Capex at 35%, leaving US$ 12 million net revenue or US$ 3 mill/yr pre-tax profit.
• Aggregate project sensitivities include: 1. Final construction start announcement by Gov’t . 2. Securing supply contract. These sensitivities can be mitigated by staged funding and not activating the mining contract until these things are in hand. In the meantime, it’s critical to get operating permits ASAP.
This is why I posted that the next big step is the permit issuance, followed by announcement of investment $$ and contracts.
Opti
Hebrews 11:6 And without faith it is impossible to please Him, for he who comes to God must believe that He is and that He is a rewarder of those who seek Him.
