At what point do you think the AIC share price becomes less entwined with the Copper price and starts following the Jericho link drive progress (LD)?
The LD had progressed 295m as of the end of September. An expected and well telegraphed slow start. Now progressing at 140/ 150m per month, or around 5m per day. One would think that in the March quarter they are over 1,000m and talking about being nearly half way. June quarter half way or further....surely greater SP focus will then be on 12 months hence?
Jericho/Eloise combined AISC are meant to be around AUD $4.50. Copper currently at AUD $6.64. 20,000Copper tpa from combined Eloise and Jericho is roughly 45,000 pounds of copper. X $2 margin...= roughly $90,000,000 profit. What multiple would you put on this? Perhaps 6.5 conservatively? Makes for a market cap of around $600m in two years time.
Currently $200m market cap, $60 - 100m more needed to get the new plant up to speed. This leaves a $300m gap or doubling of the SP in the next 18 months or so. Its not blue sky but the drill bit is going hard and the copper price may rise further, and then we also have M&A.
Initial next cherry on the SP cake will be confirmation of the plant funding, commitment to the 1.1mtpa plant with FULL and easy scalability to 1.4- 1.6mtpa.....as cryptically outlined in the quarterly.
Its now November and we have Sandy Creek results coming. They must already think they are okay or they wouldn't have mentioned them in the quarterly....but how good? Who knows.
So here's to more LD updates and others.
A1M Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
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