You raise an interesting question. There is a point in production expansion where the next incremental tonne is too expensive. This happens when the next incremental tonne means another transformer or power line or another sag mill or another ...... you get what I mean.
Most companies have a pretty good idea where this is and comtinue to do brownfield development until the limit is reached.
I have no idea where the limit for P Hill is, but I would take a bet each way and go for increased production without significant capital expenditure, then put the rest into increased mine life.
What that does, is gives you the dollars now to do the exploration to continue the mine.
HT1
OZL Price at posting:
$1.14 Sentiment: LT Buy Disclosure: Held
