Ann: Ore Supply Agreement with Glencore, page-64

What am I missing here?

Isn't primary ore, chalcopyrite? Glencore want just primary ore. The measured copper grade in the highest grade area is 19mt at 1.23% Cu this includes some NCu, but the company argues not all NCu is counted. For what Glencore want this argument is irrelevant, they want the primary ore, probably that to the East of the Morris Crk fault. In the quarterly (June) we have the following....

"To the east of the fault primary ore dominates and commences just 10m from surface, however to the west of the fault primary ore plunges steeply beneath a predominately supergene enriched environment"
Looking at the pit design, (p27) it looks like they are not mining that yet (or were not at the time).

So how long will it take to get this initial 20,000 tonnes, and does there have to be further pit redesign to get an ongoing supply, or does the alljig need to be working, or all of the above?

I would also argue that as no-one has ever seemed to challenge the overall grade of the chalcopyrite, that if this initial area is rich in it, then after the first 5-10mt, the remaining part of the measured resource primary ore component is probably of fairly low grade, perhaps similar to the indicated resource of .68%. I can't see how it could be any other way.

Explained another way, the Cu component of the initial 19mt measured resource at 1.23% Cu works out to
233,000T Cu. Of this, 30%? is the NCu (company argues there is a lot more NCu+ chalcocite, but mainly NCu), this leaves 154,000t "other ore" in 19mt, or a grade of ~.81%. So if they ship off a few million tonnes to Glencore, of higher primary ore grade, what is the grade that's left? If the first 3mt shipped off averaged 2.5% as an example, then that would contain nearly half of the chalcopyrite from the measured resource or 75,000t, leaving 79,000t in 16mt of remaining ore (ie down to .49%). As it is lower than the indicated ore .68% (which also has NCu) it seems to add up.
To me it is indicating that if they ship off to Glencore 3mt of 2.5% Chalcopyrite, then the main revenue generator is going to be the NCu scalped ore, the ore-sorted ore and the NCu from the alljig, with the rest of the plant generating only 14,000t Cu in concentrate at best (plus cobalt/pyrite/magnetite) or almost being a red herring UNLESS they discover a whole lot more chalcopyrite, ie lots more exploration.

Based on the offtake agreement that SB showed, 3mt of 2.5% primary ore should be worth something in the order of $200m to CDU. The same ore processed by CDU would be worth about $400m, but then there are the costs as well, so we have processing cost vs transport cost.

Assuming the 20,000t goes well, and in a short period of time, then a larger amount over the next year or 2, if started quickly enough, should negate the need for any further cap raise. At the same time though, they would want to get a hurry up and explore plenty of new areas and deeper, to raise the overall resource.
To me it all highlights the need for further discovery to make the Rocklands resource highly profitable in the future.