1. Most Discussed
  2. Gainers & Losers
E25 18.5¢

Grosvenor Gold Project

  1. jaked

    75 Posts.

    After studying the key metrics of the Grosvenor Gold Project ( page 3 of the RNI Quarterly Report dated 30 January, 2015 ) and yesterdays RNI announcement, it would appear that RNI on its own is having some difficulty in obtaining sufficient financie confidence for project financing despite the much improved AUD price of gold.
    Total debt required is $ 40 including a $ 2 mil contingency amount required pre-production... Then comes the cash flow !
    IF RNI had a jv partner then of course a financier would likely feel much more comfortable. ( more on this in a little while ! )
    Base Case from the metrics suggests debt payback in just 2.25 years and free cash flow of $ 92 million over 4.75 years
    IF someone such as MZM became a 50% jv partner then part of that deal would be MZM financing 50% of the $ 40 million debt required, which basis its balance sheet/chinese connections it could easily do, resulting in MZM having its desired "near term "production and cash flow available in say 9 months time.
    Succh a scenario would be a massive boost to the value of MZM.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.