In the last livestream DR acknowledged "they have a lot on their plate" and would not have looked at Nullagine had it not been put up for sale. Good on them for somehow acquiring that strategic asset in difficult cashflow times for bugger all (let alone that 14mil camp rental that was an amazing chess move).
I have always liked the hub and spoke model and the very initial strategy to build the plant first on a low LOM and resource base with the intent to add oz once in production. A risky move if you aren't confident in how much more you will find or how long it will take to find, however if you look at the map the strategy is well and truly underway. Seems to be a 75km radius wheel
Realise this is Bulletin JV thread though, apologies for getting a little side-tracked,
My point is that they now have a fantastic suite of opportunities. Most of them are smallish, but with some very good grades and likely extension.
How they stage these projects and the flow of dirt to the mill(s), as well as the related exploration/expansion for each, will require a clear strategy but also the ability to be nimble. Perhaps I am stating the obvious but I see the amount of great opportunities as also a challenge.
Lets for example say that they can prove up a nice mineable reserve for some of the Nullagine sites like Crow and Condor mentioned by Dave in the interview/preso, but at the same time they have proven up an extended resource at Bulletin (slightly deeper new find). How will they manage that. You cant go chopping and changing every time you find something that looks better, also conscious how they will juggle JV 60% return projects v 100% owned. Cant go annoying your JV partner by promising them priority of JV dirt to plant, then changing to your own 100% owned dirt. Well you could but thats burning brides and not a good long term strategy. Having 2 plants will help this situation but capex for Nullagine will take time, because we need to get some serious positive cashflow from WGP before we can get that funded (either self funded, financed or equity all need to see reliable cashflows). Self funded the best but that will take the most time so I hope they actually do a CR or a refinance in 12 months to achieve this (subject to an improved SP).
People think I am some sort of DR fanboy, but I am not. I blame initial grade control issues squarely on mgt and the DFS. However no one is perfect and mining is a hard game. Having spoken to many mining ceo's I personally like DR's style, and I get a lot better responses from him than others. He may not be everyone's cup of tea but he is mine. You could NEVER say this is a lifestyle company that's for sure.
PS:
@Dazedandconfused - in response to our chat on ALK thread, yes my love lives elsewhere too - mostly here. My CAI investment is 3x my ALK investment and if I execute my options it will be many many x. Loading up on those options sub 2c may prove to be my shining CAI moment we will see. Also added more ASM last week.
(20min delay)