Ann: OZL: West Musgrave Ore Reserve Statement, page-44

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tinhat

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18/02/20

14:28

Post #: 42998025
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Originally posted by entropylord: ↑

Tinhat,

I don’t know about BHP, looks a bit small for them, but I’d expect if OZL decided it didn’t meet their criteria then they would package it up for a sale or some sort of selldown. I can’t see them just shelving it. They could perhaps bring in an offtake partner as a full JV partner. These guys looking for security of supply probably quite happy with little return over the discount rate if metal prices are subdued, but importantly they get hedged for bull prices. Probably don’t want to run a mine, so probably want OZL’s skills still invested in it, even if OZL puts little actual capital into it.

As far as the mythical Carapateena cash anchor on OZL, take a look at the last slide from OZL’s presentation today which discusses the mooted C expansion. There they note the C will be cashflow positive from 2021.

It’s the the projects economics if metal prices are low, not OZL’s capabilities financial or otherwise, that we are up against.

I am confident of the project proceeding under “some structure”, not so sure OZL will directly fund it. They’ve already said they are looking at how to structure it.

EL

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I'm like you. I'm seeing this as a project that will happen under "some structure". Upstream users are going to need security of supply as you say and this project can all the boxes for someone who is needing to lock-in long term supplies of Ni concentrate without needing to achieve super-normal profits on the mining.

CZI Price at posting: 9.8¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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Ann: OZL: West Musgrave Ore Reserve Statement, page-44

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Avita boosts skin restoration product portfolio with 'dermal matrix' – a kind of next-level gauze made of fake skin

Polymetals finalises acquisition of Endeavor silver-lead-zinc mine in NSW's Cobar Basin

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