THREATS TO THE VAL­U­A­TION

Finweek English Edition - - INVESTMENT -

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

hold hold­ers.

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