....In addition to this, we have completed the logistics study and the contract for final engineering
studies required for the Bankable Feasibility Study (BFS) will be awarded soon.
Secondly, chemical plant design studies continue and site selection work is now in its
final phase with a limited number of short listed sites under comprehensive evaluation.
This is a critical decision with long term implications for the company and requires interaction and working with a number of stakeholders including governments, regulators, land owners and communities.
Thirdly, Arafura’s new technology continues to show strong results. Final pilot and
demonstration work programs for new technology are progressing as planned.
Fourthly, there is significant interest in Arafura and future product sales and we continue
to meet with potential customers and partners. Our challenge is to secure the right deals
to create maximum value for our shareholders. We have and are resisting the
temptation to secure an ‘early easy’ deal which would not provide sufficient value going
forward.
Lastly, financing continues to be a priority. We have met with various organisations who
are potential providers of project finance to understand their requirements from a BFS
content perspective and the types of financing that might be possible. Again, we need to
secure the best deal for our shareholders.
Along with many of our peers, our shares have been impacted by the downward
pressures of global and Australian financial markets. These events have occurred since
our fund raising was completed. Our current cash balance equates to approximately 9
cents per share which is a notable component of our share price which is currently
around 45 cents. This means the market is valuing Arafura’s other assets, including the
Nolans Project, at significantly less than 40 cents and we believe there is strong potential
for the creation of further shareholder value.
Finally, Arafura as a company will move rapidly from “Junior” to “Emerging Company” to
“Full Operator” status in a very short time. Securing the right skilled staff to join the
existing team to enable this journey to be completed successfully is something we will
continue to focus on very carefully.
At this point, the impact of the RSPT on individual mining enterprises, taken together
with the various tax offset initiatives also announced by the Government, such as
lowering company tax rate, and state royalty and resource exploration rebates, is
somewhat uncertain. Some of these ambiguities will be worked though during the
Government’s consultation process and Arafura welcomes the opportunity to participate
in this process. The reality is that Nolans isn’t just a mining operation. Resource extraction represents a
relatively minor part of the project. We also have a significant value adding chemical
processing component so the tax treatment of an operation like ours may not be straight
forward. We are carefully working through the issues to better understand the impact of
a tax whose application to Australian-based value-add projects like Nolans isn’t yet clear
to us. We remain concerned about any new tax or charge which might potentially
adversely impact Nolans, regardless of the scale of the impact.
Whilst there are still uncertainties, scenario modelling based on our current assessment
indicates that the Nolans Project fundamentals remain strong. This means we believe
there are still good prospects to raise development capital to meet our 2013 production
schedule and future returns to shareholders will remain attractive.
The fundamentals are in place for Arafura to become one of Australia’s largest chemical
companies and the pre-eminent supplier of Rare Earths to the world. We have an exciting
company development journey ahead. We have already started to focus beyond the first
phase of Nolans, it is still open and our planned drill program is aimed at establishing the
full extent of its potential. If the resource proves to be larger, there is the possibility of a
second phase expansion during 2015 to 2020 when we believe Rare Earth supplies will
still be very tight. |
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Sehr gur analysiert !!!! Und es ist nicht der einzige Fehler !!! @ aktien_research : ES NERVT !!!! Bleib doch bitte lieber bei deinen 1 € Prognosen damit wir was zu lachen haben. Da habe wir bei dem momentanen Kurs wenigstens ein bißchen was zu lachen.
