Slightly surprised the SP hasn't reacted to the presentation, and the Copper price seemingly bottoming (perhaps not?).
So now we have confirmation that they are seriously looking to upgrade the plant in 2 stages. Firstly to 1.1mtpa and then to 1.4 - 1.6mtpa. (Looks 99.9% certain to me from the wording).
Costs are down to Aud $4.75 based on roughly 0.725mtpa throughput. It was previously suggested that at 1.1mtpa throughput costs would be Aud $4.50....this is now very beatable i would think? Is $4 - 4.25 achievable at 1.1mtpa....perhaps $3.5 - 4.0 at 1.5mtpa?
Today Copper is at $6.43 AUD.....a 1.5mtpa plant will produce just over 30,000 t of copper per year. That's 60,000,000 lbs. Look at the margin on the above costs.
Interestingly no additional news re debt funding. They still need it for the first stage plant reconfiguration, but for me the second stage at current copper prices, is self funded. (1.1mtpa = 20m t copper = 40,000,000 lbs. X margin = enough the self fund second stage)
What a brilliant October they had in the Deeps. Maybe they are getting close to that legendary 54m at 4% CU hole?
I expect Sandy Creek and AMT/MT survey results very shortly.
A1M Price at posting:
31.8¢ Sentiment: Buy Disclosure: Held
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