I am being lectured by a guy who just a couple hours ago:
(1) could *not* tell you the difference between 'recovery %' and 'concentrate grades';
(2) thought nothing wrong with assuming 50% Zn recovery, 60% Pb recovery;
(3) but completely comes off the hinges when I assume a very rational 50% Au recovery!
This is a guy who will tell you that modelling resources and potential revenues is pointless (tell that to every sell side analyst in mining) and who advises you to base an investment thesis on one friggin' hole!
Not only this, he struggles mightily.... MIGHTILY... with reading comprehension. I provided soooo much in the way of supporting data in the Hod Maden case study but the confirmation bias is strong in this one and he only sees the '77%' recovery number.
Nevermind that:
(1) CapEx is over US$270M thanks to fine grinding;
(2) Feasibility states bulk floatation and copper cons is the most sensible option;
(3) Even at 9 g/T Au, they are letting 23% of gold go to tailings;
(4) Deferring CapEx for additional gold recovery for later in mine life; and
(5) EVEN if they recover 77% of the gold, nearly HALF of that may not be marketable and the pyrite cleaner circuit may be removed!
Read for yourself!
This guy has gone so far as guaranteeing over 50% gold recovery, then not a minute later pontificates on making early assumptions??
Why is this guy losing his head about something anyone else (not completely clueless) should see as reasonable assumptions??
ADT Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
(20min delay)