Thanks KKR. Was a good call. They answered the Q more like "why are you doing infill drilling" unfortunately as opposed to what are the implications of the infill drilling results not aligning with your initial interpretation of the orebody (geological model)..... Bryan did say this though from around 27:50..
"as we reported at the end of quarter 2, there was some changes in orientation and lens sizes in Federation that we obviously want to understand more and its prudent for us to make sure that we are designing our mine in a way to maximise productivity.... so the more you infill drill the better you can layout stopes etc....."
As a reminder of what they said in Q2 quarterly:
So i think it's fair to say geological model will change as its now made up of a bunch of skinner NNE trending lenses vs original interpretation of probably a fatter ENE trending orebody. What does this all mean? I have some thought but mostly guessing.
The company is trading around A$350m MCAP with A$100m cash... so A$250m EV and Peak is doing around A$100m per year in EBITDA so there's not much priced in for Federation in my view. The call was positive especially the fact that they are maintaining guidance and looking to declare commercial production at Federation this financial year.
AMI Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
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