Advanced Explorations Inc. ADEXF

whats the bad news

[commeilfaut]

whats the bad news exactly...

[rpdeluca]

Bad news is that the market was probably looking for an NPV north of $ 1 billion. Note that the project is feasible by definition.  Remember also that the project uses a $104/tonne figure...many PEAs that have been released use $115.   The price of 62% concentrate has come down significantly over the past couple of months and is acutually tracking at around $115. ...but when the

[Kadillac]

Start up mine cash flow of 2.9 billion.  Does anyone know if that is what they require initially to get the mine up and running?

[dusoft]

Made 50K entry @0.185c...I was attracted as SP was 40% down....On reading carefully, IMO FS is positive compared to other peers and with low iron prices today IRR is still 16%. Production will be 1-2 years at minimum so it is very very sweet spot positive as markets should be booming in 2014-2015,,, It appears only small zone is evaluated (C-zone) for 15 years project life

[MurrayMac]

"Start up mine cash flow of 2.9 billion.  Does anyone know if that is what they require initially to get the mine up and running?"   Hello Kadillac........no, Capex of $1.2 billion plus contingency is what's required for mine start-up.    I can't say for sure, but I believe what the press release is stating with respect to "Start up mine cash flow of $2.9

[rpdeluca]

What people don't realize here is one of the biggest factors as well that lead to a NPV of less than $1B is the price of iron ore that was used in the study.  AXI chose to use $104...many PEAs that you've seen released in the while have used $115.  If they would have used $115, it would have taken the NPV over $1B.  It's all how the numbers are interpretted but with iron

[Kadillac]

RP, If XinXing commits to the 1 Billion Capital and is good with the feasibility study, then AXI has a bright future.  A decision will be probably made pretty shortly here or probably within the next 2 months once the full report is released.  One other thing that was not put in this feasibility report is contingency costs which should be done for a project this size.  Until then

[Kadillac]

Disregard last post regarding contingency costs.  Just read details and contingency costs were included in feasibility.   With contingency, Capex is at 1.37 billion dollars US.

[rpdeluca]

I couldn't agree with you more.  Many have predicted on this board that this project would not go through. There were other projections of $2-3 Billion CAPEX numbers and yucky  (I"ll use a nicer word) OPEX numbers and that there was no way ships would ever be able to come to the port and gigantic ice breakers would be needed.  To come in at under $50 a tonne