Well, well, here were are at Nifty again. Hello to all the old posters, long time ......
So this bunch are going to adopt the Metals X Nifty restart plan by the looks of this presentation - they used the old open pit plans in the preso and are going to leach and use the concentrator as per MLX (but upgrade concentrator, MLX wasn't going to do). See the attachment below from MLX website - the MLX report.
If they do use most of this study, the market will probably believe in these guys. Plus the upside of now having 1m tons of proven reserve (it was 600K in the MLX report) makes the numbers stack up a bit better. Cu price in MLX was assumed long term $2.62/lb (currently 3.80), exchange rate 0.68 also improved. CU price likely to strengthen in the coming years as per all the analysts and RIO, BHP pundits.
So, all looks rosy? That might be a leap. Depends what these guys are up to - are they just going to pump it and seek a takeover ? Maybe. Get the plant up and running, then sell? Maybe. Self interest is a great motivator, so always something to back eh?
All depends on what they release and how capital markets are next year. At least there's new management and they have funds, and are not wasting it on pre-emptive activities. That's a plus. Their program also looks believable. So all would look good to a lender. Maybe the o/s dudes will be able to help find/fund.
Anyway, at these levels, seems interesting, seems to have found the bottom. Time will tell. Taking some positions based on the above. Hoping more dilution is not in the pipeline - probably sufficient funds right now.
https://www.metalsx.com.au/wp-content/uploads/2020/06/20200611_ASX-Report_-Nifty-Open-Pit-Scoping-Study_final.pdf
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