Ann: Storm Copper Project Preliminary Economic Study, page-38

American West owns 80% of Storm Copper. It could presumably sell down 20%-40% to end up with 60%-40% of the Project. Of course, no one wants to see that happen, but it's a fallback position for mgmt. if it can't arrange 80-90-100% [debt + off-take] funding to cover the US$47.4M in cap-ex (which includes a 25% contingency). Cu is up big in the past 24 hours, now sitting at US$4.805/lb.

According to the PEA press release, at $4.80/lb., the post-tax NPV(8%) is US$276M or ~A$435M. Notice the mention of a "Build-to-own" model in the PR, that's another way to get into production with minimal additional equity capital to American West. I doubt they would mention it if they were not in talks about it. Build-to-own is interesting because it introduces a wider range of funding parties, such as infrastructure funds and perhaps additional gov't agencies or commercial institutions. It provides further optionality for smelters to partner with say an infrastructure fund to build the operations and pay American West for the concentrate + a profit share.

Even this first-pass economics in the PEA looks pretty good if not too much equity dilution. Now, optimize, enhance & extend the mine plan over the next 3 years. Margins + cash flow could be very attractive (especially with US$5.50+/lb. copper). We're just 15% away from $5.50/lb... Some pundits calling for $15,000/tonne = US$6.80/lb. in 2027 or 2028...