Ann: Capital Raising Investor Presentation, page-28

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phil365

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24/02/21

21:21

Post #: 51299130
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Originally posted by pustayo: ↑

Should be relatively low CAPEX on the potential near term production from Sandy Flat as the NT government have signed an agreement that they will pay for the clean up and rehabilitation. I believe that RCP get the benefit of the copper sulphate to which is super exciting given its use in Zinc flotation circuits and the premium it demands. MacArthur river zinc mine buy a lot of it from the Chinese, so if they could get it enough supply from 50kms away why wouldn't they? My Suggestion is given Glencore own both the McArthur River Zinc mine and Mount Isa mines, we may see a deal with them.

Why I am suggesting this is MIM (Mount Isa Mines) are currently low on copper ore so they are thinking about removing the copper smelter and making one giant super pit to the golf course in Mt Isa to ensure profitable operation for the future which will require a huge amount of capex. The few remaining copper ore bodies in that specific mount Isa system are down at about 3kms now, so its becoming increasingly hard to make copper at profit for them. They have been buying Ore from from many smaller producers recently to keep their just copper smelter operational as they still have a shit load of lead zinc silver. I am also hearing MIM are low on sulfuric acid because they have not been producing enough sulphides through their plant so really need to get processing.

In reality its only about 800kms to truck ore to the MIM plant, so I would suggest at todays prices it would make sense if RCP could both service their MacArthur River and Mount Isa mines through both Copper sulphate and raw copper ore if they can find the sediment host which is likely feeding these breccia pipes or if they can just find some nice big economical pipes that can be mined out them self over the shorter term with small scale mining.

All of this is pure inference and speculation on my end, I am just sharing my knowledge of that area and seeing if I can join any dots.

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potentially current chemical supplier to MIM would JV in cover expenses control supply and market pricing. Not many in the Cu sulphate game, an Aussie source will be a target in this location.
My understanding from management is Capex could be zero. As NT gov has rehab liability and RCP owns metal.

RCP Price at posting: 9.3¢ Sentiment: Buy Disclosure: Held
4 Upvote

2 Great analysis

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