RE: IMC $35 Million ... Mark101 I couldn't agree more. Details of a loan agreement are easy to get through Sedar, but details of an equity offtake agreement are held close to the chest--me may not know those details until the cash flow is accounted for in the financial statements after production. I assume they will use some sliding formula based on spot price of tungsten less some agreed upon discount percent. I am ok with that.
A bigger concern should be what the spot price is--with the global softening of GDP, the spot price of tungsten has been dropping. The key time isn't now, but rather, in December 2013 when production starts. Pretty hard to predict what the spot price will be then. (although the experts seem to think it will remain high). I suspected the IMC think tank believes the GDP will be picking up by then (hence the need for more tungsten tools then) and that is why their dd took so long. In other words, I suspect the delay in their dd may have been more about the global economy forcast than about the fundamentals of the Sangdong mine.
The up side to a lower global economy over the next year is that it will help cut out the competition, because they will be unable to get funding to build a plant. There are now numerous other locations where tungsten mining is still in the exploration stage and I suspect they may get stuck their in exploration until the economy picks up and they can get funding. That is the exact time we are building so that we will be ready for production when the economy is more healthy in December 2013. In short, it is ok for Woulfe to be in a poor global economy now (assuming the IMC and bank financing goes ahead), provided ithe economy picks up prior to December 2013 production.
Mark 101, of the three unknowns (the discount rate to IMC, the spot price of tungsten in December 2013, and the global economy in December 2013) I would say the least important may be the discount rate (assuming it isn't rediculously high). Still It would be great to have a crystal ball and know the answer to these three unknowns.