RE:E-mail to SUMITOMO METAL & MINING CO., LTD.
"Given Iamgold's unacceptable and excessive misguided overcosts"
Do you really believe the management of IMG are involved on a day to day basis in the construction of this mine? WOOD PLC, is the engineering company which was awarded the engineering, procurement and construction management (EPCM) contract and are the ones that deal with costs. Given Covid and the re-imergence of real inflation for the first time in 20 years I am really not understanding the rational of this letter. Sumitomo will clearly benefit from higher gold prices that will eventually come with higher inflation. Makes sense to me that they just might have to chip in bit more to complete this project.
Wood PLC, (formally AMEC) are the same company that delivered Detour gold and are one of very few engineering companies that have any real experience delivering a project such as this. As someone else pointed out on this board, gone are the days of 1billion dollar mines, New starting price will likely be 2billion as a starting point for project viability.