Interesting insightsThought I would share some insights I have learned in a recent discussion with the management team. My discussion was in reference to a research report from Canaccord who initiated coverage with a SPECULATIVE BUY rating on a company that is doing the same thing (https://dgwa.org/wp-content/uploads/2019/02/CG-EMN.pdf).
Very useful report to help understand the plan that the WDG team has for Giyani.
WDG is doing the same thing but here are some of the key advantages that I learned from my discussion with them:
1. WDG DO NOT need to calcine their ore
2. Their leach tests show recoveries of 85%
3. Their grade is almost 5 times higher than EMN’s
4. Their contained Mn metal is about 1/3 of EMN’s in their first deposit. They also have a second deposit expected to be similar but 30-50% larger. In addition, they have another several thousand square kilometres of open ground within less than 100kms of their first two deposits.
5. They have the same infrastructure as the Czech republic, and considerably more friendly mining regime.
This all leads to lower opex and much lower capex due to grade and non-carbonate ores.
All of this will have concrete numbers applied to them in the next 2-3 months as they complete their PEA.
Good luck to everyone!