Ann: Recent Drilling Intersects High-Grade Copper, page-119

Hi @arsenic I'm glad to hear that Perennial funds are seeing similar opportunities re gold.


I figured that central banks are the market makers and they know what's coming with the revaluation of the debt piles. In a bursting sovereign debt bubble (1st in a hundred years in the west) the currency always gets thrown under the bus. Gold disconnected from rates in late 2022 so that was a massive signal that a shift was in. Western sovereigns are now behaving like EMs and that's what gold is showing.

I'd like to think NWC was lowest risk highest conviction play based on grades, jurisdiction and the technical results have been showing that over time. Pity sentiment is so poor atm but Cu price isn't $2/lb it's $4+ and based on the above currency devaluation scenario, prices of real assets will go much higher. I think once concensus realises this we may finally see sector rotation across to commodities/PMs as they become market leaders this decade. Prices aren't going up because of value but because of inflation in over indebted nations.

1oz gold used to buy 8 bbls oil in 2008, now it's 28 bbls oil. The backdrop looks markedly different when the denominator shifts from dollars to gold. This is now possible as 20% of energy purchases last year were settled outside the USD and settled at the margins with gold. This will only increase moving forwards so the upwards pressure for POG will increase.

I look forward to the sentiment shifting here and repricing upwards aligned with the assets we have and in a bull cycle, high grade smaller projects get snapped up forst and larger projects with bigger capex requirements later in the cycle.

We play to our conviction and see what shows itself in due course. I believe the team are actively promoting to Nth American markets and I look forward to the RRS conference on the GC in September to catch up and see what is transpiring.

Thanks for the reference above to the capital intensity of Cu projects. Always nice to be reminded of current state of play.