Tribute to Tree2tree … and small corrections First, I would like to offer my sincere thanks to Tee2tree for its commitment and its immense contribution which aims to protect our savings. Despite its experience in CERT, THX, TV, IGP, SWA and other misfortunes that have befallen it in recent months, Tree2tree still found the courage to provide us with an in-depth analysis for free. We appreciate your concern.
Nevertheless, some small errors have unfortunately slipped into your publication. These are things that happen so there is no need to apologize.
Regarding the ~400,000,000 shares, this is the maximum number of shares that can be issued. In reality, 240,000,000 shares will certainly be issued, 60,000,000 additional shares from which the equivalent of the Sycamore debt will be subtracted, and finally, 100,000,000 additional shares from which the equivalent of other sums owed to the state will be subtracted. In short, 240,000,000 to 400,000,000 shares will be issued.
Regarding the NPV, it should be understood that its objective is to demonstrate that the project is economically viable. Faced with this observation, we must not limit ourselves to what is indicated because the project can take a relatively different form.
More generally, a PFS is a decision-making tool for the management team as well as a negotiation tool for financing a project. As mentioned by our Robin Hood, a PFS is not a guarantee that financing will be obtained. Of all the projects, some are less risky than others. In the case that concerns us, the qualifications of the team to make such a project profitable are indisputable.
Regarding the type of financing, the dilution of shareholders is not possible. The economic value demonstrated by the PFS, combined with Robex's solid financial balance sheet and the benefits generated by the Nampala project, a conventional loan is the most realistic solution.
Regarding the history of this project, it was effectively abandoned by Semafo many years ago. As this project was their first, the plant was small and profitable by exploiting the richest minerals. As the POG was ~40% lower, the profitability of this project was insufficient. Since then, gold has appreciated strongly and Robex has opted for a different approach which consists in building a larger plant which will be able to process many ores, from the lowest gold grade to the highest. In summary, the Nampala model will be replicated in Kiniero.
Regarding the definition of new mineral resources, we can be very confident. Many areas have already been identified on the 5 permits (Kiniero and Mansounia) with expansion possibilities; just like the recent discovery of Sabali sud. Among our neighbors is the Bankan and Kankan project of Predictive Discovery as well as Kouroussa of Hummingbird Resources. The reality is that these numerous projects make up an extremely prolific area of Guinea.
To comment on the many assertions of our Robin Hood, I just want to add that the Cohen team is well invested in Robex; as does Eglinton Investments; Onex Mining; and other major shareholders. Consequently, it is appropriate to trust the judgment of these groups to assess the quality of a project, rather than relying on the advice of Tree2tree, even if it is shared with noble intentions.
In conclusion, I take this opportunity to reiterate my thanks to Tree2tree for their dedication to protecting others. We are all grateful.