Zaruma WKN 886597
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June 28, 2007
Zaruma Seems To Have Found An Ideal Partner In Glencore For Its Copper Project
It makes a lot of difference to the confidence of a company if it has someone the size of Glencore at its shoulder to share the burden of bringing a project into production. So it is with Canadian listed Zaruma Resources which signed a Memorandum of Understanding with the big Swiss metals trader towards the end of last year. At the time Minews commented that an offtake agreement would be key to the financing of the Luz del Cobre copper project on the San Antonio property in Mexico, but Glencore has subsequently demonstrated that it wants to become even more closely involved. Not only it is going to buy the copper cathodes at prevailing LME prices, but it is going to fund development and even pay for regional exploration. Maybe it has taken a page out of the Chinese book which which says that the only way to ensure consistent supplies of a metal is to own the mine.
The Zaruma team on the ground in Mexico
In the last few months the company has been reviewing all aspects of the Technical Report on the feasibility of this project which is based on mining 2,800 tonnes of ore/day. Contract mining will be used on an open pit and an SW-EW plant is expected to achieve 78.6 per cent recovery to produce 15 million lbs of copper cathode/year for an initial five years. Back in March Thomas Utter, chief executive of Zaruma, reckoned that the pre-tax operating cash flow would be US$19.4 million based on a selling price of US$2.235/lb and an estimated operating cost of US$0.92/lb.
The trailing 24 month average copper price in April was US$2.51/lb, which represents a revenue increase of around US$4 million per year. This implies a significant element of gearing to the copper price so it must be good news that it has now moved ahead to US$3.30/lb. Before hats are thrown in the air, however, it is worth remembering that virtually every mine development has reported that costs have also risen. Still if they only go to US$1.00/lb the Luz del Cobre project will be highly profitable and both companies should be happy.
Glencore is certainly playing an active part in the testwork now being carried out. This has involved metallurgical recovery tests on samples taken from different locations in the orebody. First of all trenches were dug into the oxide layer near surface and column testing showed a 5 per cent improvement to 85 per cent recovery after 30 days of leaching. After that samples were taken from two different levels of tunnel networks into the centre of the ore body and leach recovery curves surpassed 80 per cent of contained copper after a similar period. The occurrence of slow leaching primary copper sulphides appears to be limited. Closed circuit column tests are currently being conducted to replicate as closely as possible actual leach pad operating conditions and the results will be used in mine planning, but will not change the overall plan for the mine.
In the last week Glencore has announced that it is going to going to stump up US$22 million towards the US$25 million estimated cost of development. This will be contributed in the form of debt financing and it will be up to Zaruma to find the remaining US$3 million. It will also be responsible for paying for any capital cost over-runs so Thomas Utter will be keeping a very close eye on the contractor. The company raised C$579,000 from a private placement in May and there are hopes that the shares will have risen further before more money is required as the estimated time to first production is 12-15 months from when the engineering, procurement and construction management contract is awarded. The shares are now sitting 50 per cent above the price at the end of May so this looks a fair bet..
The announcement about the funding also confirmed Glencore’s interest in participating in the proposed exploration programme which includes the Trion area, 1 km to the west of Luz del Cobre, where a previously underfined oxide copper target zone has been delineated. If this exploration is successful it clearly has potential to boost the size and life of the whole project. Glencore, which has a 5.5 per cent shareholding in Zaruma, has also confirmed that it is going to buy all base metal production from both Luz del Cobre and Trion. Looks like Zaruma has found the ideal partner so let’s hope there is no post-honeymoon friction.
http://www.minesite.com
Fakt ist nur:
- Zaruma hat ein Riesenpotential, die Rohstoffvorkommen sind enorm
- mit Dr. Utter als CEO hat Zaruma einen kompetenten Mann an der Spitze. Als Doktor der Geologie, Paläontolgie und Mineralogie und Honorar-Professor an der TU Darmstadt kennt sich Utter bestens mit der Materie aus
Zaruma steht kurz davor (im Gegensatz zu vielen anderen Explorern) eine wirtschaftliche Förderung der Erze zu erzielen. Die Gesellschaft hat bereits einen potentiellen Investor gefunden, der die Förderung bereit wäre zu finanzeren. Die Verhandlungen laufen und in den nächsten Wochen denke ich dass der Vertrag mit Gelncore International AG, einem der weltweit größten Lieferanten von Rohstoffen, in trockene Tücher gehüllt wird.
Dann PRODUZIERT Zaruma, das heiß die Gesellschaft verdient endlich Geld und transformiert ihren Rohstoffbestand in CASH.
Vom Explorer zum Produzenten ist ein weiter Weg - und Zaruma steht kurz vor dem Ziel.
Ich bin für meinen Teil voll investiert. Bei einem Aktienkurs um die 10 Cent ist die Aktie sehr günstig bewertet. Bis hin zu 15 Cent würde ich alles aufsammeln.
Wenn demnächst die News des Vertagsabschlusses kommen, dann sind Kurse um die 10 Cent Geschichte...!
Ich denke das bei Zaruma das Chancen/Risiko Verhältnis sehr gut ist und man in einen soliden Wert investiert. Hier sind vernünftige Leute am Werk (hatte auch selbst schon Kontakt mit Thomas Utter). Es gibt viele Explorerwerte, aber viele sind auch nur "Kirmesbuden" die von unseriösen Leuten geführt werden, der Kurs von einigen BB gepusht wird, und wir kleinen Anleger schlussendlich doch wieder nur mit leeren Taschen da stehen werden.
Daher, join the Zaruma-Community !!