When attending a meeting, such as this, how queries are responded to is as important as the actual content of the answers. IMO.
[Responses were excellent and showed great depth at this meeting IMO]
Yes this is subjective and subject to spin so it is up to the individual to make up their own mind what to do with the information.
I am too easily swayed by what appears to be a cogent response so DYOR. I left the meeting happy my investment is in good hands. this has been my opinion for a long time with the caveat that building a mine takes a long time. and ROI is a roller coaster.
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After the business was dealt with Steve Abbot gave a presentation to an audience of board members (some hadn't seen it) and one SH!
He and the board expanded on aspects queried.
There was a slide presentation which is possibly not announced yet though it just summarised much of the PFS announcements.
One slide showed the time line. The main points from vague memory.
Q3 22-?Mid 2024 DFS. So aspects are already begun and staff will be sought as it progresses.
Q2 23? to the end of 2023 PROJECT FINANCE. (might be 2024).
OWNER-MINER as the stated Operating structure. No change today so funding will be interesting to follow.
Would BHP or Rio be interested? Maybe. Rio are looking at developing Winu so a boutique operation (for Rio) might be possible. S32's current copper production would be doubled by adding all of CVV. [ Comments from Alasdair Cooke] No suggestion such would happen and IMO no point in asking more than this as no definitive answer would be forthcoming. Offtake agreements is my best guess for at least partial funding with activity in the lithium supply demand chain being an example Steve Abbott mentioned
With copper supply demand, as with so many other elements, forecast to be in deficit by the end of the decade M&A etc may be one aspect of the billions needed to get the supply into balance. CVV are showing their deposits could be part of that supply.
?Late 20224- 2025 construction
Modular construction in Perth area with shipment to site minimises the number of people on site in times of labour shortages.
?2026 Operations
Permitting is being finalised - an ongoing process.
============================================ The potential benefits of today's PFS had been flagged earlier. This is why such studies are done. More fine tuning to come with a DFS. The board seemed happy with the upfront capex savings and increased revenue (Potential anyway) - not surprising.
Strong local support with a decision for a village/camp to be made at some point. Probably in Wongan Hills though could be near the mine site.
Power is a biggie and tied in with the overall change required to move to renewables that will be a worldwide issue as well as the local WA market. Coal fired electricity sourced from Collie to the SE of Perth will be stopped with renewable energy coming from elsewhere within easier transmission distances. Wind from Geraldton north of Perth and relatively close to Bindi/Dasher. Alcoa/S32 and others have recently made submissions to the process of carbon reduction. Massive infrastructure changes are needed which CVV may, in part be able to piggy back on. The Bindi operation could stretch the Grid but the changes above are part of what could benefit CVV.
CVV benefits from so many changes that have been occurring in the mining industry over the last decades. Automation and a decentralised operation centre along with electric vehicles are likely.
One of the directors (RM) mentioned his initial impression of CVV at sub 0.3% Cu, albeit large tonnage, was a no go. He now recognises that as a bulk operation if is definitely feasible.
Ore Sorting is definitely being factored in with ongoing work that will possibly be reported by year end. The benefits of sorting are significant but the plant needs to have the design flexibility to cope with less feed and higher grades among many possible issues. Two forms are being investigated. Bucket in mine sorting and conveyor belt. OK for former which is apparently in common usage around the world. The space for an ore sorting facility is part of the current belt design. Done well this can have a significant impact on the bottom line.
Mt William - tenement still in limbo. Slowly slowly. Didn't get an opportunity to ask much about exploration. Current reserves at 27Mtpa 28 years gives enough time to add more at Calingiri. The resource at Bindi is pushing the billion+ tonne mark so the 534Mt reserve tonnage is just a factor of drill density. CVV expect a high conversion rate of resource to reserve with further drilling based on continuity of structure and grade to date. Expect some sterilisation drilling for proposed waste dumps west of the mine area where much of the land is salt impacted already. Also isolated by faulting so should be close to ideal.
Didn't ask about funding post CR.
--------------------------- Blast from the past? Checking spelling on SA's surname I checked the board list in HC.
On top is Mr. Marcel Hilmer who, I thought, was no longer part of CVV management.
Does not show up on the company website so HC probably have old info.
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(20min delay)