THREATS TO THE VALUATION
needs to continue. Management have done a fantastic job in getting the asset to perform in a difficult environment.
the NAIC project appear to be favourable. This needs to be validated by the preliminary economic assessment. Assuming this is so, a suitable partner for the project needs to be found. cash-f low negative over the period.
The company owns 30% of NAIC and already enjoys joint management control of the project. The company announced tha that it would aim to list this project jointly on the JSE and Toronto Stock Exchan Exchange (TSX) by the end of the 2014 calen calendar. Petmin expects to increase its ow ownership stake to 40% for another $8 $8m after the preliminary economic assessment asses is published, as is planned towards toward the end of March.
Doig says: “We still have a further option for 9.9% of the project, which in total would give giv us 49.9%, and we are looking for a s strategic partner for this project. The pl plan is to sell the merchant pig iron from N NAIC into the US minimill steel mark market. So we will look to see if we can’t engage engag with one of these types of clients in th the Great Lakes region to assist in raising raisin the capital.” Shares in the sepa separately listed vehicle will be un unbundled to Petmin share