Ann: Hermosa Project Site Tour, page-6

Thank you for the thoughtful post, Desert.

Back in 2018 I guessed Hermosa would take 6 years to production, ie 2024. Also, the Zn was more valuable than the Mn.

Zn mining lacks the frisson attached to more exotic metals. Investors shrug at its prosaic purpose. Yet Cannington's FCF delivered WMC-BHP-S32 a staggering amount of money. Hermosa is a magnitude larger and S32 has the experience and capital to build it into a world-class asset.

$US1.5b was a colossal sum to pay for Arizona Mining. Yet GK & team's very strong balance sheet effortlessly absorbed the cost. AFAIK, S32 has had the cash and borrowing capacity to buy or build anything it genuinely desired at any time.

Disappointed S32 didn't pick up the Brazil Bauxite and Alumina assets recently sold to Glencore for $US1.1b. That would have been an ideal add-on and diluted my concerns over Hillside's electricity supply. They know exactly what the real value there is, so I defer to their judgement.

Meanwhile, a sizeable M&A opportunity remains possible, without recourse to a capital raise.

Ash