SELL
by
Room101
on
25 Sep 2013 08:57
Price at rating: 26.30, now:
I see someone has trouble with understanding the meaning of a hand over, on April 18th the site will be handed over to T.C.T.A. No pumping of AMD will take place until all plant and treatment facilities are completed, you cannot pump AMD without this facility up and running. 7 Months to go before then!! Trouble is that underground ore is running low, as in the RNS of 2nd August reported by the company. Gold production is poor and losing money, gold retrieved by this company at a staggering $2000+ per oz. So liquidity is the problem here, 6.9 mil raised after fee's, 4.5 mil lost first 6 month's of this year with more to come, 5 mil to be raised, another dilution to shareholders, so in my opinion it's a sell, you do what ever is right for you, GLr Group Five Civil Engineering was appointed the full R319 million treatment plant construction contract, including civils, earthworks, building, and mechanical and electrical installation. It will be three times larger than the next biggest similar treatment plant in South Africa (at eMalahleni), with highly complex concrete structures, piping and electrical systems.r Holden says the plant is designed to treat 57 Mâ„“/d. “At this stage the final ‘treated’ effluent will still have a high sulphate content (approximately 200 mg/â„“). This is no different to what was discharged by the mines up until to 2008 when pumping and treatment at this site ceased. The stream bed is already heavily polluted from old tailings and urban stormwater run-off. Although this is not ideal, it is still a lot better than doing nothing until a long-term solution has been completed.â€r The biggest impact caused as a result of the project is the increase to the salinity of the water in the Middle Vaal system, which necessitates the release of fresh water from the Vaal Dam to dilute it. “This will result in a deficit in the Upper Vaal system in 2015. What this means is that if there is a drought, water restrictions will need to be imposed.â€r Wayne Poulsen, senior site agent for Group Five, explains the basic treatment process: “An extraction pump station, including two huge dewatering pumps, will pump AMD from the existing ERPM shaft. The water will be pumped to two reactors, which combined have an 80 x 80 m concrete footprint and are 5 m deep. This water is then pumped to a lime dosing plant, including silos and eight mixing tanks, each of which are 16 m in diameter and 4 m high. Two thickeners, each 47 m in diameter, will settle out the solids. The treated water will be discharged via pipelines to the nearby Elsburg Spruit and the sludge discharged via pipeline to an existing ERPM tailings facility.†Group Five is further responsible for the construction and delivery of all ancillary tanks and buildings as well as a full-scale laboratory.r Ekurhuleni Metropolitan Municipality will supply the necessary clean water to site and power will be provided via a high-power 4 km overhead line.r “Our construction timeframe is less than a year, meaning not a day can be wasted. Trial commissioning will start in November 2013 , with trial operations running until 18 April 2014,†Howard Wakefield, senior contracts director for Group Five Civil Engineering points out. “We will hand the plant over to TCTA at complete readiness after which it must run permanently, 24/7. Our most critical challenge throughout the project remains time; we have to meet our critical deadlines. But we are confident of success; we started well and are making excellent progress.â€r [link]
Score: 87.50