There are plenty of possible SP catalysts over the next 2 years. So long as we don't buy something stupid i would see the SP around $80 - 1.20 in 2 years time. This as we know is not exciting enough for many speculators, especially as the next 6 months looks rather less than exciting.
This said, and in the most immediate, the most exciting piece of news for me will be in around 2 weeks time with the quarterly. And its the number 1,373.
That number being the tons of copper we produced in October. A mine record. IF and its a big IF....that number has been repeated in November and December then the quarterly production will be a little over 4,000t or annually 16,000t. Running the numbers through this then.....and at $14,500 AUD pt of copper....that is almost exactly $15,000,000 per quarter above budget (at $6.50 AUD copper and 1,000t over budget) and comes to just under $60,000,000 a year over budget.
Now i'm not saying that October can be repeated, but if it can be for a year then we won't need any debt financing for the new upgraded plant. AC has always said 'debt and cashflow' will pay for the plant....maybe it really will be substantially cashflow funded?
And back to October, maybe it wasn't such an outlier of a month. Maybe it is the new norm? The Deeps average grade is 2.8% and Lens 6 is 2.8 - 3.1%....and they have now been developing both for over a year so maybe they are now firmly into the 'good stuff'? (700,000t plant through put X 2.3% = )
Happy NY to all and DYOR as always.
A1M Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
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