Bunkum. They have been working these mines profitably since 2001. Grades vary and they would undoubtedly be forced to adjust the cutoffs and mine less if (very unlikely imo) the pon drops substantially. There history indicated they would still be making a NPAT margin in the vicinity of 15% (on reduced revenue of course).
However imo they have positioned themselves in the past year for better quality mines. Take a look at individual mines, eg OJ and the projections for CH to see what I mean.
What I will accept is that MCR will be trading on low PE's for quite a while yet. The market has yet to see the difference between a MCR and a PEM or KZL imho.
EL
vre in voluntary liquidation, page-9
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