They paid c. US$10m (with $2.5m staged over the next 2.5 years) to acquire 80Moz AgEq. That is US$0.125 per oz. Their average cost of adding ounces is 27c as per quarterly. So that tells us at this point in time it literally costs more to drill ounces than it does to buy existing ones.
They outlined in the quarterly they are looking for additional bolt ons. So until ounces start getting paid they may aswell acquire ounces + optionality on drilling upside with our cash than drill. The time for that will come. For now keep bolting ounces together for peanuts to move us towards 150Moz IMO. Then we drill extensions and downdip to target 200-300Moz.
Then if silver pops we have the ingredients for upside SP movements to get cracking.
Ann: June 2023 Quarterly Activities & Cashflow Reports, page-7
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