RE:Conference call transcript + Paradigm Capital upgrade to "buy" Important highlights IMO:
Re: Itafos status...
"...in summary the operations are ramping up in normal course and we expect to hit nominal monthly GSSP production capacity later this year."
Re: Prices
"Santana is where we are anticipating that the price will be sustainably in the mid-300s and as a range between $320 to $350 per tonne.
At present time in the district, the Cerrado districts we are seeing in the range of $240 per tonne we think that, that will improve over the longer term into 2014 and ’15 in particular. And so as a reference for next year we would say that a credible range will be in a range of $260 to $300 and we think longer term at $300, $300 plus. Santana will be higher as I mentioned.
Re; Market share
"...we can see a comfortable $30 per tonne improvement to the cost with the higher grade product.
Perhaps even more important than cost Joel, more important than cost is that it makes the product more sellable and that allows us to be able to get more assurance on market share."
Re: Sanata financing...
"We have started financing discussions with our financial partners and have received some strong interest for both debt and equity in the project. We will continue advance these discussions over the next six to nine months."
"And the second is we want to be able to be delivering that very expected robust cash flow coming from Itafós and completing those strategic discussions because our intention is to be able to finance Santana with the most modest, if any dilution to our shareholders. And we think that there are excellent opportunities for us to be able to do that. That takes us into roughly the middle of next year, may be sooner but that’s what is our current timetable."
Any thoughts from you guys?