Cost Estimates I don't see the information anywhere but I don't see how HBK will be able to purchase the equipment they need for the quarry unless they are buying very used equipment, unless they have plans to be leasing the equipment from the manufactures? I don't see any information outlining talks with dealers or any agreements.
Quick equipment estimates:
- 1 D9/10 dozer
- 2 100t trucks (most likely CAT 777)
- 1 FEL (most likely a cat 988 or something of similar size)
- 1 excavator (cat 345 or something of similar size)
- 1 crushing/screening unit
- 1 conveyor/port loading facility
*Then they will need more equipment as they ramp up production but I assume that an be funded by cash flow or other means when they need to.
Unless they do a long term lease or equipment rental I can't see them being able to afford all that equipment for 2.6M as there still will be many other costs in constructing the site. I'm also assuming the $555,000 general operating expenses is only to cover the cost of operating the quarry once it is up and running until cash begins to flow in.
This cost estimate is also from 2007 and doesn't account for 6 years of inflation either which is also a potential concern.I
'm not trying to be negative as I believe that this project has great potential to feed the upcoming boom that will occur in BC. I'd just like to know what the company's more detailed plans are for purchasing/leasing equipment as I just want to ensure they have planned this through before I invest as too many times I've seen companies go with a too optimistic cost and then have to scramble to obtain further financing (often with share dilution) which always hurts the shareholders. Hopefully the financing they announce has lots of padding as I can see the potential for the cost to exceed their initial estimates.