restored confidence I got an email from David yesterday where he answered some of my questions
As he is "just" the IR guy he has really no influence on the PFS so I got the impression while reading his words that he also believed he could release it already earlier, you can see he feels really uncomfortable for those delays.
IMO they are defenitely not holding anything back like some are here claiming, the PFS is simply not finished yet.
He is also confirming again the possible production of the outsourced concetrates.
Moreover he states that the BFS has already started!!!!!
So no reason for panic here, they are moving on steadily to production.
Would they take all these initiatives if Kut. II was uneconomic - certainly NOT
My questions:
Hi David,
I just wanted to ask you if everything is on track regarding the PFS and if there will be any news or other sort of updates for investors in the near future?
As your last official corporate update was in late February I think investors would like to be informed about recent developments.
Just one other short question: In the MD&A document I read Stans is planing to start Plant No. 3 for outsourced concentrates by the end of 2012, so I wanted to ask you when Stans is planing to make the final decisions concerning this subject and if potential cash flows from the outsourced concentrates are already included in the PFS?
Thank you in advance for your quick response.
His answer:
Hello ......,
The PFS was delayed upon the completion of a final sign off from VNIIHT in Moscow and our engineering teams. We have been anticipating for some time that it would be released ‘shortly’. I have been under the impression that this would have been some time ago, however there are many moving pieces to this economic study and we are still awaiting final signs offs from engineers and our experts.
With respect to the status of Plant #3 and the outsourced concentrates. We expect Plant #3 to be operational for outsourced concentrates by the end of the year. We have had some discussion with other parties to source this concentrate, however no definitive deal has yet been reached. For Stans to process its own concentrates, we would have to fully rebuild Plant #1, which is currently being redesigned by VNIIHT to incorporate more environmentally sustainable technologies, and we would have to re-assemble Plant #2. The time frame to accomplish these two tasks would be sometime in late 2013. We will issue an update on these initiatives in the coming months.
Potential cash flows would not be included in the upcoming study, however, they would be included in our Bankable Feasibility Study, certain parts of which have already commenced.
I will keep you posted with any details as they come to me and of course, if you have any further questions, please send them my way.
All the best,
David Vinokurov