For the really, really challenged!
"Pursuant to the Agreement, MPSA has an option to purchase up to US$100,000,000 of aggregate and screened rock, and a minimum of US$75,000,000, subject to PDI providing such materials within a three year period, for use in the Cobre Panama project."
Where they gonna' get the money for the ramp?
Where they gonna' get the money for Spain?
One more time!! There was no agreement completed by the attorneys and signed by either company!!!!!! NOW THERE IS ONE!
$75,000,000.00 over three years is $25,000,000.00 per year minimum! $100,000,000.00 over three years is $33,333,333.33 per year! $33,333,333.33 divided by 12 = $2,777,777.78 per month for three (3) years. That is well over two million dollars per month FCF when you consider it is just a crushed waste product!
The engineering estimates from Minera-Panama/Inmet showed that it will require approximately $200,000,000.00 of aggregate at current prices to finish Cobre Panama. It is logical, and not much of a stretch, to consider that FQM will not expend cap/ex to build quarries, but that they will in fact buy more aggregate as the project requires it over the next five years.
Understand that there is a working partnership/relationship between FQM and PTQ as promised by FQM to the Panamanian government. Try to remember if you have to make notes....this is the way FQM operates. It is in their history and their blood. Make the effort to learn about them!
