Ethiopian News and Opinion Forum


Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby richard » 14 Jan 2012, 07:18


[ http://www.tesfanews.net/archives/6097 ]

Nevsun Resources (TSX: NSU) produced 101,000 ounces of gold for the quarter (Q4) ending December 31, 2011, at its Bisha mine in Eritrea. Year-to-date, Bisha Mine produced 379,000 ounce of gold, including 35,000 ounces during the commissioning. Cash increased to US $347 million at December 31, 2011, which is a 52% increase from the end of the September quarter (Q3).

It is believed that the State of Eritrea has also cashed in more than $170-million in revenue from its 10% free carried interest, 5% royalty and 38% corporate tax alone. Any cash that would otherwise be paid to the state for its 30% stake will keep going to Nevsun’s coffer until the purchase price of $253.5-million been paid in full through after-tax cash flows.

The best quarter of the year in terms of gold output was the third quarter in which Nevsun pumped out 110,000 ounces gold by milling 446,000 tonnes ore. In comparison Nevsun recovered the fourth quarter’s 101,000 ounces gold from 455,000 tonnes of ore.

The TSX- and Amex-listed company, Nevsun, said construction for a second-phase copper plant at Bisha started in June 2011 with ongoing civil work and equipment delivery. The South African EPCM contractor for the copper phase, SENET, and the Eritrean construction company, SEGEN, are taking part in the project as it advances to steel work and equipment installation this year.

The copper plant start-up is set for the first half of 2013.
http://www.tesfanews.net/archives/6097



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Fed_Up » 14 Jan 2012, 14:01


Abeba Haile said it all....hehehehe the first song.




eskekskskskskks sehab...haz....



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Halafi Mengedi » 14 Jan 2012, 14:27


Per the contract you get nothing except export duties until all the initial investors paid of and all the cost associated to excavate the gold. Your payment is at rear end of the business cycle. By the time Shaebia may not even exist but other true owners of the lands may be the boss of the mining industries, too bad.



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Castro » 14 Jan 2012, 14:39


Agameeeeeew, eat your heart out !



It is believed that the State of Eritrea has also cashed in more than $170-million in revenue from its 10% free carried interest, 5% royalty and 38% corporate tax alone. Any cash that would otherwise be paid to the state for its 30% stake will keep going to Nevsun’s coffer until the purchase price of $253.5-million been paid in full through after-tax cash flows.


Halafi Mengedi wrote:Per the contract you get nothing except export duties until all the initial investors paid of and all the cost associated to excavate the gold. Your payment is at rear end of the business cycle. By the time Shaebia may not even exist but other true owners of the lands may be the boss of the mining industries, too bad.



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Deqi-Arawit » 14 Jan 2012, 15:28


Halafi Mengedi wrote:Per the contract you get nothing except export duties until all the initial investors paid of and all the cost associated to excavate the gold. Your payment is at rear end of the business cycle. By the time Shaebia may not even exist but other true owners of the lands may be the boss of the mining industries, too bad.


Any organization or private citizen who enters a business partnership with Shaebia loses... :D Bottom line!!!



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Fed_Up » 14 Jan 2012, 15:42


and the money Eritrea share is goes to ....



[youtube]http://www.youtube.com/watch?v=peg-LjPDAKM&feature=related[/youtube]



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Halafi Mengedi » 14 Jan 2012, 15:55


Deqi-Arawit wrote:
Halafi Mengedi wrote:Per the contract you get nothing except export duties until all the initial investors paid of and all the cost associated to excavate the gold. Your payment is at rear end of the business cycle. By the time Shaebia may not even exist but other true owners of the lands may be the boss of the mining industries, too bad.


Any organization or private citizen who enters a business partnership with Shaebia loses... :D Bottom line!!!


I agreed the slave servant Meles is the sore looser to Shaebia, otherwise, no one in the right mind will enter to any kind of contractual agreement with Shaebia to begin with.



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Facts » 14 Jan 2012, 16:49


Halafi,
After ordering stoppage of all mining activity a few years ago (when it became clear that Eritrea was well endowed with minerals), the ministry of Mining renegotiated the mining law to allow for additional 40% equity investment. With the 40% interest (including 10% without any project financing responsibility), 5% royalty, and 38% tax, the Eritrean government or national mining company gets 65% of all profits. That is excellent rate considering that these companies are taking on risk of exploration and managing the entire process. On top of this, there is employment for locals and SEGEN construction company is getting contracts to do the mine construction activities that it can do. With the copper and potash there will also be considerable port duties.

Halafi Mengedi wrote:Per the contract you get nothing except export duties until all the initial investors paid of and all the cost associated to excavate the gold. Your payment is at rear end of the business cycle. By the time Shaebia may not even exist but other true owners of the lands may be the boss of the mining industries, too bad.



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby Dagna » 14 Jan 2012, 17:04


The gold gathered in Eritrea would take the entire TPLF soldiers. Then again, all TPLF soldiers are overweight and suffering from pregnancy (big belly), hence it would take all TPLF soldiers and more to lift all the gold.



Re: Nevsun Produced 10,700 Kg of Gold and $347-million cash in 2011

Postby ZEMEN » 14 Jan 2012, 17:17


Fed_Up wrote:and the money Eritrea share is goes to ....



[youtube]http://www.youtube.com/watch?v=peg-LjPDAKM&feature=related[/youtube]



Fed_up, what is interesting is in the video you have posted, all those heavy machinery cost exactly 170 million. Do you see how corruption free government can achieve. Don't worry about lessor Halafi, he will die of envy of Eritreans. I bet you he is a good beggar. that is the profession on one can out done the Tigryans.


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