RE:No Need for cash injection.Macloud1 wrote: The real facts based on the fourth quarter budget presentation on Mpvd web site.
Capital Expense/Operating Expense
Construction 2015/16 304,000,000 dollars
Operating Expense 2016/17 65,000,000 dollars
Total CapEx/OpEx 368,000,000 dollars
Drawn to Nov. 2016 323,000,000 dollars
Balance to Sept. 2017 45,000,000 dollars
Total funding 368,000,000 dollars
Reserve Balance 75,000,000 dollars
Tiny: I hope this will quelle your fears , this project including operating costs is funded to September 2017 and we still have $75,000,000 dollars in resrve funds, We 6,700,000 dollars in diamond sales for the first sale and will pick up at least 24,000,000 at the next sale and what ever we pick up after that with the remaining 8 sales during the year. The management are no fools they included all the costs you talk about in the construction and commissioning costs to full production. The reason it is funded to September 2017 was to build a buffer in case we ran into unexpected problems. We will be in full production by the end of March. This mine is rich beyond imagination. We will have a dividend this year.
Frankly, I do not understand the above numbers. Particularly the ones I have highlighted.
Probably erroneously, I understand them to mean that they only have $45 mil (in red) left from the total funding of $368 mil because they have drawn down $323 mil as of November '16 (in blue.) Please give me the correct understanding of those numbers, hopefully I have it wrong.
The number that does make me feel good is the $65 mil operating cost for two years (in green.)
As far as your estimated $24 mil from the next sale (in maroon,) Oh, do I hope that comes true. I will be thrilled if that happens - although maybe I should hold my tongue for if they are going to offer 270,000 carats, perhaps $40 mil would be a better sales figure for the Feburary offer.