Seafloor mining is among those activities that a lot of investors won’t have confidence in until it is actually proven to work. But there is a growing acknowledgement that it could well happen soon.
As Nautilus Minerals Inc., the pioneer of this business, inches closer and closer to a planned oncoming of operations in 2018, chief executive Mike Johnston said the conversation around Nautilus is changing. Generally, people no longer doubt this company is ever going to put its mining plan into action. Instead, they just wonder if it will work the way in which Nautilus hopes.
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“This project is fairly binary to individuals – you either enjoy it or you don’t,” he explained within an interview.
He said investor confidence is building every time Nautilus reaches another milestone. Recently, the organization took delivery of seafloor production tools. Johnston said the preparation from the 230-metre-long vessel can also be running smoothly and it should leave the dock in the middle of the coming year.
Nautilus still needs more capital to initiate production at its Solwara 1 project in Papua New Guinea. The company really wants to raise another $125 million to $175 million, which is bigger than its current market capitalization (about $94 million). Johnston maintained he is confident Nautilus can raise those funds, that could come from a combination of sources for example strategic investors, debt, equipment financing and a royalty. The company has spent about $225 million to date.
