RMS take over, page-366

Hey bucks, welcome and I would love to hear further thoughts as you complete your DD (for further enjoyable discussion).

There are a multitude of pros and cons for any mining venture, and on balance, after having met the team personally... I still would prefer for SPR to stand strong alone (I mean... we are named after a Spartan), but... I am also cognizant of risk (reduced as it is, though unlike some perhaps, I am looking quite long term, to when dividends, long term mine plans etc are still a priority for me, whilst some are much more focused on short term (which is fine) pay off to be able to move elsewhere), as even with the best orebody and team, there is some risk. Let alone... when faced with uncontrollables like market meltdowns, POG falls... sheesh... another Pandemic.

Regarding the mill, in a nutshell, its all about profitability, perhaps SL has not quite articulated it in quite a while, as the 10-15m presentations he does really don't enable him to speak in depth and explain the full reasoning behind the decisions/plans being made. I will try and raise with Simon, that when the PFS is released, he and Craig find a way to sit down and explain it to the market, not just in the documents, but in an interview of some sort.

What do I mean about profitability? Well, Simon and the team want Dalgaranga to be one of the lowest cost mines in Western Australia. To do that, it needs to be 'fit for purpose', so... with multiple high grade and medium grade deposits (NN & PP are high), (WW and FP medium), it makes sense to focus on margin. Margin is king, just look at CMM (and arguably RMS, in fact.... in many ways, RMS have proven to be very good at getting their hands on high grade satellite feed for their aging plant...................).

So Dalgaranga is totally different to say, King of the Hill... to increase the margin, VAU are making a bit plant, even bigger, because in the end, that is their only way to do it (sure... they are finding a bit more U/G ore, but it's nothing like NN). SL and team want a mine plan that supercharges profitability (particularly in the first 5-7 years, whilst in every way possible enabling a long mine life giving clear visibility that this mine will survive the full cycle.

@pbawley - the PFS is incredibly important because when RMS or anyone else lobs a big, you need a big stick to keep them from stealing the company for peanuts. The PFS will clearly give SPR a tangible figure to build a defense around. As @calmbeforestorm mentioned, SPR will have a bigger reserve than RMS down the road at Mt Magnet, though just as importantly... the margin to be made on the ounces.... are not at all equal, that is why RMS wants SPR..... clear as day, they know they will (if successful), have the best acquisition possible within the sector.

A while back I think there was a discussion about DEG and SPR in terms of what both projects might spit out FCF wise... and from recollection, SPR came close to matching DEG (yet it currently trades at 1/3 the value, with the added bonus of being able to pay for itself in a far shorter time frame).

I can also state that Craig and Simon stated, the Juniper decline will not be alone one day.... with another decline likely to attack West Winds, Four Pillars and Sly Fox. So... suddenly, that could provide upwards of 2mtpa (not the same amount of ounces, as NN/PP are likely double or triple the grades).
There are many variables still bouncing in the air before anything can be set in stone.

SL has stated another MRE will be coming mid year, so at a guess, the PFS will be based off those figures... which is why the drill bit is going to spinning like crazy everywhere possible. Though RMS has shown, that their LOM plans can include just about anything in regards to 'production targets'.
I mean.... look at their Roe project... ounces are in the mine plan, but no reserve and at 1.8g/t U/G!
SL want to be able to put out the best study they can, I think the quote is "drill it until you kill it", though that is for drilling obviously, I believe they have the same process for their mining studies (will have to quiz Craig on that one).

As always, all I can do is speculate, but hopefully a small part of the above is close to mark.