- The true capital requirement here is beyond a junior miner like HCH to arrange. Start up capital + Expansion capital + Working capital during ramp up = Well north of what is being quoted in the headline number which is primarily the start up capital. Plus all these will only head further north by the time the project is actually delivered
- Then we have the construction, ramp up and technical risk (things like grade, throughput , recovery etc) which rarely ever reconcile with the PFS
- Then we need another ~50million? to deliver a DFS
What levers can CE pull
a) Monetize the Gold stream? [50 Million?]
b) Sell the water rights to a SP [ 100M?]
c) Enter into a JV and let 49% of project go [100M? for 49% of a PFS level project]
d) Hope for some drill bit magic at La Verde (This may be the best/most valuable of all levers)
e) Sell everything [$250M?]
All numbers are USD so I wouldn't mind option e)
HCH Price at posting:
66.0¢ Sentiment: Hold Disclosure: Held
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