My take aways from the conference today:
The actual ASX released presentation is very underwhelming, why??? Primarily because all the ducks are not lined up.
A draft of the small scale restart report has been handed over to financiers under "commercial in confidence, nondisclosure et all" and finance contracts are being drawn up at present.
Within a week we will have a JORC compliant MRE for the heap leach inventory, this will be an additional 90 kt approx. of copper metal.
With this Jorc an offtaker then may be able to sign an offtake agreement (Glencore?) with prepayment.
With the prepayment a debt funder may assist in cleaning up the balance sheet and funding the small scale restart which will generate FCF of about $20m pa
"Flat footed are buying"
Matt is acutely aware of cleaning up the balance sheet "months before" the options are due in December.
Analysts are not permitted to cover CYM with the balance sheet in its current state.
This quarter FID for small scale restart and balance sheet cleaned up, all bundled together in a funding package.
Chalcocite material (treated as waste in the open pit scoping study) to be processed through the concentrator, the other oxide may be leached at a later date. A staged cut back means they can get to the Chalcocite ore within a similar time frame to refurbishing the concentrator upon FID.
With the concentrator and leach, Nifty should be producing 40-50 ktpa
Clive Donner was at the conference, he parted on good terms with CYM and is now fully focused on a scoping study for a copper/gold project in NSW, a project he privately owns and bought a couple of years ago, before any involvement with CYM. I think he was there networking.
Matt is very impressive and very well connected and presumably under a lot of pressure from his own and other private equity funds he brought onto the CYM register. He now has a great team of experienced people on the management team and I believe he will deliver.
It was explained to me today that the majority of the oxide can indeed be processed through the concentrator as the Chalcocite can be floated.
(from the table below) For the M and I resource 7.9 Mt is Chalcocite and the total oxide including Chalcocite is 13.5 Mt. hence 58% of the ore Bazza was going to leach can be concentrated and provide cashflow on the way to the sulphide, saving about $200m in SX-EW capex.
NOTE the Chalcocite ore is 1.1% - 1%Cu just like the Sulphide ore
I can confirm my sentiment of "Buy"
