RE:ITOCHU Still Responsible for Interest Bearing LoanThe followings are from IVN's Q3 report:
Financial position as at September 30, 2019 vs. December 31, 2018
Platreef Project Shaft 1 construction 22,060 21,525;
Salaries and benefits 6,059 6,023;
Administrative and other expenditure 4,867 5,091;
Shaft 2 early works 3,149 3,696;
Social and environmental 1,793 1,977;
Studies and contracting work 1,106 977;
Site costs 744 838;
Infrastructure 111 365;
Total development costs 39,889 40,492;
Other additions to property, plant and equipment 322 141;
Total additions to property, plant and equipment for Platreef 40,211 40,63
Kipushi Project Infrastructure and refurbishment 15,886 16,239;
Salaries and benefits 12,762 11,024;
Studies and contracting work 5,440 5,364;
Electricity 4,918 4,935;
Depreciation 1,518 2,388;
Other expenditure 7,540 9,983;
Total development costs 48,064 49,933;
Other additions to property, plant and equipment 1,291 923;
Total additions to property, plant and equipment for Kipushi 49,355
Based on the above, Platreef cost $40 Millions for 9 monthes, & Kipishi cost $50 millions for 9 monthes, a total $90millions for 9 monthes, $30 Milliuons per Quarter.
I don't see Kipushi in production in 3 years, while Platreef in production 3-5 years. So both projects burn $120 millions per years.
So IVN's managememt should minimize the developmemt cost for the above 2 projetcs, concentrate on the development of their copper mine(s) to generae cash flow for other projects.
tiger
bloomfield18 wrote: If you read the news release carefully, IVN is funding continued development through an interest bearing loan to Ivanplats. Which means Ivanplats must repay the loan to IVN. In other words, ITOCHU, through their 10% interest in Ivanplats has incurred debt instead of spending additional cash up front. They have not in any way quit the project. It just demonstrates how much cash IVN has available, that it can afford to lend money to junior partners.