The easiest way to knock this bid on the head is for FND to disclose copper recoveries and inventories for the 4mt of ore on the heap leach pads. EFDL are basically saying the valuation is too high because production is lower than predicted if the BFS leach curves are applied. FND is saying production is low because of the plant/crusher "events" and, now new ore is being stacked, inventory is rising; which raises the question, with long leach times, of why the inventory to run at full capacity wasn't already there. The base case valuation is simple : its driven by a production forecast based on the mine's actual leaching performance x copper price, costs are well under control. Meanwhile the copper price is nice, the SP is only just above the bid price and nowhere near the evaluation price range in the target statement where we want either the SP or offer price to be.
FND Price at posting:
25.0¢ Sentiment: Hold Disclosure: Held
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