The list is already long, but other things to like include being agile:
They recognised what they had was potentially a very strong hit and they expedited the assay result. As shareholders we liked the quick result, but the other key reason was so that they could make an informed decision to expand the DD drill programme.
The drill hole order was adapted from initial plans. Note holes 12/15 and 14 are green (drilled) while #1, 2, 3 and 11 are still red (yet to drill). The extension below wasn't just a case of sticking to the original plan and then adding a further extension.
While they had the initial plan to drill 3,500m (11 holes), as results emerged they changed their plan to 15 holes and 5,000m adding a further 4 holes at circa 350-400m. They now know a lot more about North Aubry.
The only bit of their strategy I'm not 100% agreeing with is following a standard plan of resource extension and then planning and building. In a normal market this is sensible because the resource extension increases the share price meaning less dilution when the capital raise for building occurs.
Given the simply staggering Spod prices, looking to expedite production on North Aubry would appear sensible and I think that's why they have sped up their central Aubry expansion - they need to know what ground is going to remain as a potential plant platform as they build a large open-pit mine.
The economics of a heavy liquid separation plant with 7.04% Spod and 91.6% recovery are probably going to trump a DMS plant, but what I'd like to see is a mid-size DMS plant done first - built with a configuration that makes it more readily relocatable. On the grades and recoveries noted, if even 500kt of ore was quickly put through a DMS plant they have circa 100kt of spod to sell at spot prices. At say a US$2,000/t margin thats US$200m of EBITDA noting to get this margin requires spot prices to fall from their current price. This then provides the cashflow for a more expensive and longer to construct main production plant (and continued drilling).
Given the lack of companies with JORC resources, the demand for Spod and the lack of Spod coming on-market soon they need to be fielding calls about when they can get into production. I'm hoping that the agility they showed with production will be repeated in the speed to get into production.
Another thing that would be nice is before the MC explodes, agreeing an option to get the other 20%.
GT1 Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
