Hermosa the monster, page-47

HC readers will have to indulge our S32 love-in, Desert.

"Importantly it will be self-funded." This is a key element driving S32's future and value - base metals may not be sexy, but cash flows similar to the staggering gains Cannington has produced cannot be ignored.

Note the scale of initial mining and processing operations are a fraction of the resources.

Taylor's initial nameplate capacity is 4.3mt of ore - on Taylor Mineral Resource estimate ... reported in accordance with the JORC Code (2012 edition)1 at 153 million tonnes, averaging 3.53% zinc, 3.83% lead and 77 g/t silver. That is 35 years' production, so we can expect the Taylor operation to double again using cashflow. Meanwhile the orebody remains open at depth and along strike.

The Mineral Resource for the Clark deposit is 55Mt, averaging 9.08% manganese, 2.31% zinc and 78 g/t silver. The PFS-S has defined an option to produce ~60kt per annum of battery-grade manganese (~185kt of HPMSM), as well as zinc and silver, over a ~60-year period (8 May 2023). This is a stunningly modest ambition - likely pitched that way to encourage an interventionist US government to co-fund a much larger operation, reducing S32's risks and enhancing profitability.

IMHO, none of this is reflected in S32's current share price (forgive me if I repeat myself).

Ash