The comments of the ANZ CEO today that inflation isn’t transitory were very interesting and counter to RBA’s view (as an aside, is this an inflection point for the housing market?).
We all know mining cost inflation is running even faster at present and probably explains the delayed Hillgrove appointment of mining contractor. I Believe this may effect start up of operations in Armidale. Never mind, antimony is an important resource which is still in the ground and value is actually increasing with commodity price movements and its key usage isn’t going away, especially with geopolitical tensions. And gold as well as a hedge.
For me Liontown approval is key to next movement in the share price as this should be easier to bring on line with existing mining contractors. At present the market can only partially price it in because it maybe rejected (unlikely but possible). But as before, just shows how hard it is to get approval in the current environment and is almost ensuring commentators views that this will prove to be a commodity price super cycle; there’s only so much cheap zinc etc. (and further inflation).
I actually like that they’ve not tapped shareholders regularly to get here and see it as a real positive.
As long as they stay cashflow positive, even when there are production disappointments eg required cable bolting, overly wet conditions, Covid impacts, electrical outages etc, I’m relatively happy especially if they pay down the current debt as indicated.
Bring on Liontown approval and start up for the value accretion.
Pitt DYOR IMHO GLTAH etc
RVR Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
