What's the catch with the CAPEX?I thought SS2 showed quick...

What's the catch with the CAPEX?

I thought SS2 showed quick pay-back metrics.

Maybe: CAPEX is too high relative to the market cap, so a capital raise to fund a decent proportion is off the cards, and they even think a loan is unlikely?

Or maybe a smaller scale start-up is simply reducing risk all round (maybe large investors keep bringing this up). Eg. snow-road scenario could be unviable with a big start-up, but viable with a small start-up. In which case, a lower CAPEX scenario would help to cut out 1 risk (if the road didn't happen).

Maybe if the road happened, or the market cap rose, it would allow us to transition back to a higher CAPEX scenario.


Or maybe they are quite confident in the idea of agglomeration heap leach, and think it will boost certain metrics, while cutting CAPEX at the same time - making funding/construction more likely.


Us retailers seem quite focused on NPV. But might instos be more focused on probabilities, confidence and minimizing down-side risk? Cutting CAPEX may be a way of cutting down on risk (even if it reduced NPV, as long as it was increasing the odds of actually realising that NPV).