Hermosa the monster, page-45

Back at Hermosa the Monster.

The 2023 Annual Report has interesting and positive commentary. Note 13 Impairment of non-financial assets says in part:

Development approvals – Construction is planned to commence in late FY24, subject to a final investment decision for the Taylor Deposit. The addition of the Hermosa project to the FAST-41 process has reduced the expected timing of Federal environmental approvals and permits by approximately two years. A Record of Decision (RoD) to permit surface disturbance and additional tailings storage on unpatented land will require completion of the National Environmental Policy Act process with the United States Forest Service.

S32 has already spent approaching $US800m on Hermosa, according to Note 11 Property, plant and equipment, on top of the purchase price of about $US1.6b (18 June 2018).

Those big numbers make the FID moot - except the decision does depend on the possible contribution (grant, not loan) from the US Government under FAST-41. Holders will be hoping FAST-41 really does mean fast and generous.

If construction is set to commence THIS FINANCIAL YEAR, perhaps Mr Market can begin to put a value on the project. IMHO, Hermosa is not priced in at all. A large US Government contribution will galvanise the share price with a shock & awe moment.

Hermosa is a globally significant mining project. S32 is already a major Zn-Pb-Ag player in Cannington and Hermosa Taylor's mining and processing is near identical.

I am soooo bullish!

Ash