ONE OF THE 38 Projects which G M Processing has requiring investment / Joint Venture
G M Processing owns a plantwhich is currently in Newcastle, having completed a processing contract.
The plant is a 70 ton perhour fine coal process plant.
We have had numerousrequests for the plant to be placed on a number of mines.
We would require R5,750,000 ( five million , seven hundred and fifty thousand ) capital to carryout the following.
Current plant value inour books after depreciation R5,000,000
To refurbish and upgrade to100 ton per hour R 5,000,000 atcost
factorycost/ Labour / Installation / transport R 750,000
The plant would takebetween 4 and five months to refurbish, upgrade and commission .
Expected return :
100 tons per hour @R32.00 per ton ( 50,000 tons per month ) R1,600,000.00
Running expenses R 300,000.00
Net profit to JV company R 1,300,000.00
The plant is modular so maybe moved from one mine to another with limited effort.
The plant may be dismantledin aprox 7 days .
The plant may bere erected in aprox 7 days.
The market value of theplant will be around R 15 million ounce upgraded and refurbished.
Wecould utilize this current holiday period to start the plantmodifications so that we in a position to commission the plant in thefirst quarter of next year.
As this is one of theprojects that requires a smaller capital input and the plant type is in demandboth Nationally and internationally we would feel very comfortable in joininginto a JV and or structured share agreement.