RE: RE: RE: RE: RE: RE: PTQ visit Goldpet,
Inmet is still saying that they could get their own aggregate but they are very willing to use PDI's aggregate. The amount of aggregate needed has been estimated at between $200M to $400M over the next few years. As part of an agreement with PTQ Inmet is willing to buy a large amount of that aggregate from PDI. Inmet wants to be friendly. It is a very small country.
Inmet will need massive amount of development for extracting and crushing to supply that much aggregate for their own use and time is precious. Looking at the site it is not even sure that it can be done but I am not an expert in that.
There are no other suppliers within 50 km. Transportation cost would be an issue for Inmet
Pricing by PDI is very reasonable since the aggregate is a by-product of the mine.
Bottom line the agreement will include a very large PO for aggregate and that was confirmed by Inmet.
As I mentioned before FQ has not been on site in any by way. They have no access to contractor contracts and they have breakup fees so I have no idea how this will play. The wild card is that several funds have expressed concern about the deal falling apart in a conference call with Inmet on Wednesday. The concern is that they think the price will fall back to the $50 - $60 range is it does not go through. So has much as inmet say "we are undervalued" the funds have a more immediate horizon for ROI.
As far as Petaquilla is concerned they don't really care who since the winner has to deal with them. However I think they would prefer to stay with inmet since it is a known quantity.
Cheers