Risks
Project Finance
Finders is well advanced in discussions with a number of international project finance banks and expects to mandate lead arrangers early in Q3 2011. Finders has also received offers for mezzanine debt, off-take arrangements and is evaluating convertible instruments. The balance of financing is intended to be sourced from equity, most likely in the form of a placement and rights issue.
Project Delivery
All of the key personnel involved in the project have significant project experience with many having extensive copper heap leach-solvent extraction-electrowinning backgrounds. The two stage nature of the project also mitigates risk as cash flow from the EDP will be available to fund any cost overruns on the Main Plant.
Second-Hand Whim Creek Equipment
Second-hand equipment from Whim Creek will be installed with a nameplate capacity of 18,000 tpa of copper. The risks associated with using second-hand equipment have been mitigated by either replacement or refurbishment of critical equipment items.
Opportunities
Longer Mine Life
With mining reconciliation during the demonstration stage, copper grades from the transition zone are known to be under reported in the Resource Estimate.
Copper recoveries from demonstration Heap 3 (80%) exceed BFS assumptions (75%).
Satellite deposits such as Meron are located close to existing operations and could provide extra ore.
Maximise Indonesian Content
The feasibility study only went part-way to achieving Finders' requirements to maximise Indonesian content in order to capitalise on lower in-country cost structures.
Power Station
An option exists for the power station to be provided by an Indonesian independent power producer (IPP).