Ann: Quarterly Report for December 2023 Quarter, page-13

I liked this quarterly provided water height numbers for Capi Cu.

It is very clear now why regulator refused E pit for tailings storage. The whole pit is full of water to the brim, no reasonable basis for regulators to allow tailings. The water balance is reducing at a snail's pace, potentially looking at years for water level to evaporate back to pre-flood levels.

Capi Cu really has 2 options moving forward for tailings capacity. Suspend production and build the ETSF lift 2, this could take 3-6 months+ to complete. The other is this "long term TSF 3" options. The time frame for this is unclear because company has released little information. Guessing LT TSF 3 time frame could be years before approval and completion.

Cashflow and debt is the key at the end of it all. Company needs to top up the jar. Best SH can hope for is a normal capital raising. Alternative would be convertible debt deal favouring a particular SH but all other SH comes off worse. Unlikely to see the company make it past this quarter without doing either one.

I am really taken back by the management actions to lead up to this point. Connecting the dots with the transition to new CEO. But you never know what to get with the new CEO.