GREY:PGDIF - Post by User
Post by
oiltaron May 09, 2016 8:36am
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Post# 24853254
PEA
PEAI expect the PEA in June will show a mine life of 6 + years for the 12 million cts in the upper portion of CH-6 with a cash flow of 2 million cts per year of MIN $450 million then it will start to mine the ch-7 at the same time as CH-6 goes underground in year 7.I expect cap ex to be $600 million due to the fact the pies out crop at the surface with no overburden to strip off the top.
While I think PGD might partner the project if no out right take over bid comes before the lower cap x costs could be in favor of full funding 100% by PGD.I would not rule out that PGD could bid for the Jerico plant by funding the clean up of its site as price paid for the plant.
If this were to happen PGD could move the plant to Chidliak all for the sum of say $300 million and expand it to handle 2 million cts rather than 1 million cts further reducing the funding of Chidliak and cuting the capex net back to less than 6 months.
This is speculation but I was told a couple of yrs ago that Jerico plant could be had for a song for Chidliak.I don't know if PGD has further looked into it but thats were I got the information on Jerico.
I do not however know the current status of Jerico.
But IF PGD could get Jerico then they would not need any funding JV partner.
I guess we wait to see what happens with the PEA.