Trilogy - Bornite, page-24

Hi desert.

Many propositions and questions in your post. I'll respond to the fun ones.

On metals prices, do not be distracted by journalists and up/down rampers referencing spot price peaks. OMG! Prices are down! Quick - panic!

What matters is the annual realised prices. If you look at S32's reporting, these are entirely satisfactory. From the 22AR:




S32's aluminium business is excellent and not to be dismissed. European Al smelters are closed by their energy crisis and wont reopen until abundant renewable or nuclear power is available. That is a million t/pa production cut for probably a decade. They will have to import and compete with Asian customers - ouch! If S32 has a renewables-powered Al smelter project in the filing cabinet, this must be the time to dust it off.

S32 intends to spend $US230m (check) on Hermosa this year. A lot of money by any measure and prior to FID. It is a giant, high grade project and holders ought be very grateful for the earlier strategic work by GK & team to get to this point.

I think they are gaming the US government on the Clark deposit - dangling battery-grade Mn production before their eyes, seeking support in permits, financing and patented land title.

Ambler is equally a jewel, high grade Cu Au, under snow for 9-10 months a year.

Time to production for all this is as yet unknown. I expect internal funding without recourse to fresh capital - a holders' dream.

I have significant Cu exposure - yet I also have a niggling thought I ought to have more. I have learned over the years not to ignore these twitches. Which and when is the hard part.

GLTAH

Ash