Interesting take, Jorganon. It can certainly be argued S32 has internal investment opportunities without indulging in M&A. Yet these are future forward and GK has cash NOW. Play it well and a sequenced combination of internal growth and M&A would turbocharge performance.
Hermosa Taylor first stage capex is $US2.5b over the next 2.5 years - big money for any miner. Thereafter it should - 'should' - be self-funding.
GK was fishing around for US government subsidies for Hermosa Clark battery-grade manganese. How this plays under a Trump administration is anyone's guess.
If the Ambler Access Road is approved and Arctic and Bornite can proceed, your view may be correct. These deposits are under snow except during the 4-8 week summer thaw and it is hard to see how their development could be sped up. How long to build a 200+km road with many water crossings accessed from only one end through snow???
I continue to see M&A as likely. The hard part will be finding something worthwhile at a reasonable price. Copper M&A is a very crowded scene.
S32 may surprise by buying other base metal operations.
Ash
S32 Price at posting:
$3.68 Sentiment: Buy Disclosure: Held
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