RE:RE:RE:RE:RE:RE:RE:RE:Interesting few days...
ICT1111 wrote: Just for clarity;
Plant 1 600,000 tpa operational
Plant 2 1,200,000 tpa scheduled for operation beginning Q3
Plant 2 extension 1,200,000 sheduled for operation by year end 2022.
Plant 3 plans to be brought forward (i think i read to be available by H2 2023)
So, if Plant 2 comes on line on schedule we will be able to produce 100% of 600ktpa and 50% of 1,200 ktpa in 2022 which equals 1,200,000.
However, Plants 1&2 are modular with several production lines running side by side. John Kaiser has suggested that it might be posible for some of these lines to come on stream early providing a little boost to our 2022 capacity. Either way, current guidance is 700 ktpa not 1,200!!
As the limiting factor now appears to be production as opposed to sales I have questioned whether the company could outsource 'crushing'. With margins growing, at least in the short term, and the government in 'crisis avoidance' mode the idea of shipping full wagon loads of freshly quarried ore to third party grinders and receiving 70-80% of full revenue at the mine gate must be an appealing and risk free way to expand production very quickly.
if I remember correctly outsourcing the crushing was done prior to the plant 1 completion so this option while as you say, adding somewhat to overall production costs, with current exceptional margins, would be an excellent way to potentially meet farmer demand above current plant capacity. An excellent question to pose for the upcoming call if they're not already considering this strategy.