As said I agree that this project looks very good form the PFS, and there is tremendous upside no doubt. And yes off course the issues have allowed for this low pricing, however as I have stated there some real reasons for this low pricing with real risks. Just have a look at the share price of some miners that didn't manage to get to production, you will realize the potential downside is much bigger then 20%....
As I pointed out the 2 years may have cost them much more then just time. If the boom ends and other high quality IO producers come online, there is real risk this could get mothballed... And in terms of off take partners, those guys now have choice (they didn't have nearly as many options 2 year ago).
And Mitsui might have agreed to come back to the negotiating table but that doesn't mean they will be back on board. I certainly hope they will mind you as that would get the ball rolling!
And I don't believe discounts are costumery in negotiating off takes, and if they would be permanent it would be a horrible idea, undermining the economics of this project, so no to that thanks.
Again, great project but significant hurdles.... Big upside but a speculative investment at this point in time, that is the reality IMO.
CAP Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
