25 August 2017
Metal Tiger Plc
Receipt of final KEMCO Economic Contribution Assessment
Metal Tiger plc (LON:MTR), the London Stock Exchange AIM listed investor in strategic natural resource opportunities, is pleased to announce that the Company has received a final revised Economic Contribution Assessment, produced by Five Corners Consulting, for the assets of the Company's Thai Joint Venture ("KEMCO JV") over the Song-Toh and Boh-Yai silver-lead-zinc mines (the "Project") located in Thailand.
Highlights (Note: currency values are denoted in USD):
· Total quantified direct benefits to the Thai national economy of $287.4 million, comprised of:
o $130.6 million in payments to Thai suppliers;
o $47.4 million in salaries and wages to local and Bangkok employees;
o $37.1 million in taxes and fees paid to the government;
o $69.3 million in royalties; and
o $3.04 million in community projects and training.
. An additional $115.0 million in indirect multiplier benefits will accrue for a total contribution of $402.4 million.
o Total benefits to the local Kanchanaburi Province economy of $152.1 million, including:
. $27.7 million in allocated royalties;
. $40.1 million in salaries;
. $45.8 million in purchases of equipment and consumables; and
. $15.4 million in up front capital expenditures.
· The Project will generate external benefits beyond the financial returns by:
o Developing Thailand's skill base through training of unskilled, semi-skilled, and qualified nationals;
o Providing employment opportunities in rural areas;
o Setting world-class benchmarks in safety, employment standards, business governance, and environmental management;
o Helping Thai firms to develop new products and promote exports; and
o Providing detailed land surveying data to the government, which can then be applied to land- use management.
· Indirect benefits will help the Government achieve its goals set out in: "Thailand's 20-year strategy (2017-2036)", for attaining developed country status through economic stability, human capital, equal economic opportunities, environmental sustainability, competitiveness, and effective government bureaucracies; and "The 12th National Economic and Social Development Plan (October 2016-September 2021)", which focuses on reducing income disparity and poverty, enhancing competitiveness, promoting natural capital and environmental quality, and boosting confidence in Thailand in the international community.
Five Corners Consulting is an independent boutique risk/corporate affairs consultancy that focuses closely on Southeast Asia and has delivered country, political, economic and regulatory risk assessments on every Association of Southeast Asian Nations ("ASEAN") country. A draft version was delivered in January 2017, using economic outputs generated from the Preliminary Economic Assessment produced for the project by ACA Howe in 2013. This revised version incorporates the economic outputs modelled by SRK Consulting in their JORC compliant Competent Person's Report as announced on 13 June 2017.
The Economic Contribution Assessment considers the total economic benefit of the project to the Thai economy at the following levels:
• Direct and indirect benefits to the national economy;
• Benefits to the Kanchanaburi provincial economy; and
• External benefits generated from linkages with government policies, human capital development, governance and standards, FDI, and enterprise development.
And includes contributions such as:
• Payments to Thai suppliers;
• Wages and Salaries paid to local employees;
• Taxes and Fees paid to Government;
• Royalties;
• Community projects, training, scholarships & activities; and
• Contractor Services.
Assumptions made regarding payments to non-Thai suppliers, thus not contributing to the Thai economy, as well as the portion of supplies that can be sourced locally versus nationally, were based in part on historical purchasing records as well as input from former employees involved in purchasing.
A conservative 'value-added multiplier' of 1.4 was used to calculate the indirect contribution; that is, for every $100 in direct contribution, an additional $40 in indirect contribution would accrue to the Thai economy, via consequential benefits of more widely induced economic activity. All numbers reflect the economic benefit for the projected mine life of 13 years.
Michael McNeilly Chief Executive Officer of Metal Tiger commented:
"We are delighted to confirm receipt of the Economic Contribution Assessment highlighting the significant benefit that developing the Song-Toh and Boh-Yai silver-lead-zinc mines will bring to the country. We look forward to Kemco delivering the Project and realising this contribution."
http://www.moneyam.com/action/news/showArticle?id=5641205