Projektupdate: German Mineral Resources AG - Annual- and Outlook

The year 2012 nearing the end. Reason enough for the German Mineral Resources AG (WKN A0XYG7) Review one year and an outlook on 2013 to give. And reads very interesting.

This article comes from Björn Junker The original article >><<

For 2012/2013 the company had set several goals, that one has reached in his own words for the most part already. Firstly wanted to streamline its portfolio significantly DRAG, what by - was reacted sale Georgetown Gold Mine and the partial sale of Rhein Petroleum - profitable. In the coming year in this regard are to further transactions.

Moreover, had decided the DRAG, their capital focused use. This means the funds are now invested almost exclusively in the subsidiaries Tekton Energy and Wolfram Camp Mining, which are already in production. The other activities, however, are financed by the partners in the respective subsidiaries.

And last but not least it had the German commodity AG aims to, to increase their level of cash. This was achieved both by the aforementioned sales and other properties- and debt financing. At the end of November, liquid assets in the Group amounted so despite the meantime successful investments of tungsten Camp 13,3 My. Euro.

Next year, the company will now focus on Heidelberg, The portfolio continues to rebuild and to increase production in the oil / gas and tungsten. On the payment of a dividend for 2012 holds DRAG further stated, you can imagine but also, In addition to investing in new projects. Corresponding services are already being tested. With its solid financial situation, the DRAG is watching the current for young resource companies very difficult market environment is well positioned and have an advantage over many of its competitors.

But now on the various projects:

Bei Tekton Energy, to 63% the German commodity belongs, it went 2012 good progress. The Company has during the year nine vertical wells drilled in the Windsor area in Wattenberg Field north of Denver / Colorado. Here we met with all the drilling on oil wells and all could be brought clean and safe in a stable production.

In this way, Tekton produced by the end of last month a little more than 40.000 Barrels of oil equivalent - approximately 90% Oil and 10% Gas - and was thus pretty much on schedule. Now focused on the preparation of Tekton horizontal wells in the project area. Data from horizontal wells in the Niobrara- Codell and layers, the working of two large companies in the Wattenberg field have been published, suggest, that a very attractive economic potential is. The industry leaders achieved their initial production rates from horizontal wells 250 to 800 Barrel Öläquivalent pro Tag, while vertical wells only after presentation of DRAG 20 to 60 Barrel pro Tag erbringen. The average calculated total reserves per horizontal well is between 325.000 to 350.000 Barrel. On average, the investment deserves within one year back.

It also became clear in recent months, that the optimal spacing between the horizontal drilling Wattenberg field are much lower than previously thought. Taking into account the results of the large companies Tekton therefore arises for the potential 60 to 80 Holes in their license area and possible reserves of 20 My. Barrel Öläquivalent! The summer conducted by Tekton 3D seismic also revealed no significant geological faults, that would call into question the drilling program. Tekton has been over for more than 70 Drilling to detailed planning and local permits have all been before. The still necessary approvals from the Colorado Oil and Gas Conservation Commission is expected by end of January 2013 completely present.

Tekton will nun, unlike previously planned, all wells within a maximum period of three years to carry out even. It is believed, thereby achieve the greatest value to Increase. Possible Drilling Tekton provides in February 2013. That of course depends on the financing of the work, but negotiations are already underway with various potential financial partners. The company estimates the expected total sales to end 2015 to around 180 My. USD, which on 2013 20 My. USD account.

Because of the potential and the unexpectedly favorable technical and economic conditions for horizontal drilling, it is unsurprising, that the DRAG 2013 puts an emphasis on the development of this project.

Also in the German oil- and gas operations are 2013 The initial drilling done. Rhein Petroleum, at the German commodity AG nor 10% holds, was completed in mid-October once the final 3-D seismic survey in the license area Heidelberg Weinheim. Overall, it has in the Rhine Valley and the Bavarian Alps 750 km2 on oil- examined and gas-bearing structures. This is the largest land-3D seismic survey of the last decade in Europe, so the DRAG. Researchers are now working intensively on the analysis of the seismic data and has generated even see some drill targets. From the second quarter of next year then will Rhein Petroleum 2013 several holes perform. Here are a few holes made with partners.

The 100%-owned subsidiary, Wolfram Camp DRAG produced since May 2012 regular tungsten- and more recently molybdenum concentrates. Here, however, has been found, that the reduction had to be adjusted, and that it is necessary, the plant throughput to 40% increase, to achieve at lower ore grades, the target production goal can.

So you have now due to changes in the breakdown concept, the ratio of overburden to ore mined - the so-called "strip ratio" - much to some 6:1 improved. The cost of cutting is to implement some other optimizations around 40 AUD per tonne of ore are, what the world is comparable to medium size open-pit mines.

Another important factor is the plant throughput, The maximum current 29 Can handle tons of ore per hour. The upgrade of the plant, which should be completed by January / February, is then a flow rate of 49 Tonnes per hour lead, while the recovery rate to approximately 75% the metal in the ore is increased. The treatment cost per processed ton will be around after the conversion 20 AUD / tonne and are thus also be competitive.

Based on the above-mentioned basic data, so the DRAG, is tungsten Camp 2013 already processed in the plant at an average grading 0,3 % WO3 and an APT price of U.S. $ 350/mtu operate profitably. Putting on these dates, should Wolfram Camp next year, according to the company generated revenues of approximately 30 Can achieve million AUD.

However, the relevant price of tungsten APT in Europe in recent weeks, decreased due to the difficult economic environment around USD 300/mtu. But, so the DRAG, Go to most market observers believe, that price early next year again in the direction of the average price 2012, at about the. 400 USD / mtu is, will increase. Wolfram Camp Mining expects in his plans 350/mtu with an average price of USD.

For the recently now also produced molybdenum concentrate, the company intends as soon as possible to find a buyer. Negotiations with smelters on the conclusion of a molybdenum purchasing agreements have already been incorporated.

The originally 2012 geplanten Exchange Gang der Tin International (TI) AG, the German commodity moved once. Roadshows bei Investoren in Europa, Asia and Australia showed, that potential investors looking at the mountain of God, and projects as a very interesting Geyer, in view of weakness of the markets for IPOs of resource companies in Australia and Canada, however, a shift in the placement of the year 2013 have recommended. However, preparations are still behind, that you can respond in the coming year at very short notice, when market conditions improve.

Tin International will concentrate so only once on the development of projects, particular studies on the metallurgy of the mountain of God. First results on this it is hoped to already present in the coming weeks. Currently working on the Company's geologists also deposit model, to generate drill targets, with the help of higher grade areas within the deposit can be defined. TI provides the capital increase in April, almost 3 My. AUD.

Even with the rare earths Storkwitz AG (ITS) precedes it, even if the JORC report (Joint Ore Reserces Committee) has not yet received the existing resource. Currently available data indicate, however, a high correlation with the historical data from the GDR era. It is expected, the final report to be obtained in the coming weeks, but is dependent on the Australian expert.

Also, when SES is undergoing a capital. It will be used to finance various collaborations, with the help of SES developed new methods for processing and processing of rare earths. On planned for next year IPO holds society.

With respect to the Canadian Wrigley project tells the German Mineral Resources AG, that 2012 exploration work on the farm were continued-In Agreement between Devonian and Glencore. Among others, metallurgical work performed, Surface sampling performed and old cores reanalyzed. A final report is still pending for this. Based on the results of Devonian and Glencore will then advise on how to proceed. The total investment by Glencore in November in the Farm-in-defined threshold 6,5 My. CAD reached. Glencore holds it now 51% at the December 2011 formed joint venture company Alapa Resources and Devonian 49%. Devonian will continue to operate but as operator for the joint venture.

The Gold Mine Georgetown has repelled the German Mineral Resources Ltd has been successfully adapted. The conditions were specified in the contract for 22. October 2012 meets, shared with the group. The buyer obviously has the first part of the purchase price in the amount of 10 My. AUD contractually paid immediately. The other four purchase price payments of each 1,5 My. AUD are then end of December 2012 and at the end of the first three quarters 2013 due.


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