good assessment Deme

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29/08/23

10:19

Post #: 69606550
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Originally posted by Deme ↑

We are going to be crushed once the recapitalisation has been completed & they come out of suspension.

I look at this play now as an option on the copper price.

On page 4 of the June 2023 quarterly, they indicated that the Nifty LOM study on the integrated oxides + sulphides is anticipated to be completed by Q1 2024. That's a full 7 months from now.

They also stated that the Nebari facility "could be rolled into a larger, longer term development financing facility in the near term (likely within 12 months)". So, let's say by mid-2024.

IF the copper price is strong in 10 months from now & they put out a robust LOM study that is satisfactory & said lenders provide the financing - we may catch a bid.

If we are sitting here in mid-2024 with no financing in sight, I will most likely look at this as a lemon, cut my losses & move on. I'm prepared to give the new management team a crack. Baz is a mining engineer & can stay in his lane of competence & let those with mine financing experience ply their trade.

1.6mt of contained copper across Cyprium's projects & almost half a billion in sunk capital in the form of extensive infrastructure/plant aren't going anywhere.

If Cyprium successfully transition into a copper-producing operating entity, I have no doubt that the suitors will come knocking. Rio Tinto have signalled their future intent with regards to copper & make the most sense. That would be the ideal exit strategy - being taken out for a premium after we are successfully producing copper.

I'm under no illusions as to the mountain of hard work ahead. No guarantees that this new mob won't stuff it up either, but I have no way of knowing that. I'll give them a crack rather than wipe myself out.

A lot of punters are screaming "undervalued" in the lithium space. I disagree. There is still a lot of hot money in lithium, although it is slowly adjusting. The copper space is where real value can be found for the patient speccy investor - but it is a tough space to be in right now. Will copper ever become "sexy enough" to go nuts like lithium? If one accepts the demand projections out to 2035, the red metal will have its time in the sun. All IMO. DYOR.

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good assessment Deme

CYM Price at posting: 10.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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