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"Big Picture, mate. Big Picture." ... but they specifically said...

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roybatty

112 Posts.

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25/07/17

11:19

Post #: 26059953
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Originally posted by Lazarus65 ↑

"You should try to not let your sentiment affect your investing and certainly not affect your weighting of evidence and reason."

Right back at you mate. You think 50% feed stock lowers margin, but we do not have evidence for that, in the face of higher sales value too. You also have no evidence as to what the trade-off levers are between cost of higher infeed versus value of greater output volumes. You ask for 'proof of concept' to dwell on the 'how'. Management clearly believes the proof of concept is more about the 'what'.

Today's very welcome statement, has given us a flavour of the opimisation that the company is working towards. They have clearly indicated that the right 'mix' is not only based on cost of input and value of output, but also on quantity of output (vis a vis nameplate capacity). Purely as an illustration - would a (say) 10% increase in input costs that yield (say) a 15% increase in output volumes not make sense? And that is at each grade of output.

The fact that they have these degrees of freedom open to them would appear (to me at least) to be the proof of concept that they should be singing about. As far as I am concerned, they have proven during commissioning that they can produce 58-62% (or better) from varying grades of low grade ROM feed stock. I suspect most investors would be unhappy if they ran it at this name-plate capacity if they now have evidence that this is a sub-optimal solution to what they can actually do by playing around with higher grades of input.

We are building a business here....not proving a technology.

Big Picture, mate. Big Picture.

Expand

Originally posted by Lazarus65 ↑

"You should try to not let your sentiment affect your investing and certainly not affect your weighting of evidence and reason."

Right back at you mate. You think 50% feed stock lowers margin, but we do not have evidence for that, in the face of higher sales value too. You also have no evidence as to what the trade-off levers are between cost of higher infeed versus value of greater output volumes. You ask for 'proof of concept' to dwell on the 'how'. Management clearly believes the proof of concept is more about the 'what'.

Today's very welcome statement, has given us a flavour of the opimisation that the company is working towards. They have clearly indicated that the right 'mix' is not only based on cost of input and value of output, but also on quantity of output (vis a vis nameplate capacity). Purely as an illustration - would a (say) 10% increase in input costs that yield (say) a 15% increase in output volumes not make sense? And that is at each grade of output.

The fact that they have these degrees of freedom open to them would appear (to me at least) to be the proof of concept that they should be singing about. As far as I am concerned, they have proven during commissioning that they can produce 58-62% (or better) from varying grades of low grade ROM feed stock. I suspect most investors would be unhappy if they ran it at this name-plate capacity if they now have evidence that this is a sub-optimal solution to what they can actually do by playing around with higher grades of input.

We are building a business here....not proving a technology.

Big Picture, mate. Big Picture.

Expand

"Big Picture, mate. Big Picture." ... but they specifically said they would be using a 3B pencil not 2B!!!!!!

NSL Price at posting: 2.3¢ Sentiment: Buy Disclosure: Held
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