Points 1,2, and 3 are currently in play, with the objective of reducing capex and opex, and therefore creating a feasibilty study that will be in keeping with current market conditions, and creating a clearer path to financing. Obviously this is a huge step forward, and will side step Chinese price control somewhat, and i presume EXIM would want to see this improvement before they commit, thoughts?
Yes Chinese fiscal stimulus has not been over multiple sectors as yet, but manufacturing is declining, and factories have been slowing production for months now. So it's believed this will require government to implement some form of stimulus, which in turn will stimulate throughput across the broader spectrum of the manufacturing industry, and raise metals prices accordingly.
The US metals plant has been touted as a good chance of success, and Rowena was excited about it's chances. If this materialises under a fully funded grant scheme as part of the Made In America agenda, then we are in a very favourable position. If the new heavy RE circuits are confirmed, and the leaching returns favourable results, then there's a serious growth chance in the SP. I can't see there being too much optimism being applied here.
Point 7 is a similar situation as China. Europe are lagging behind, and need to create a new growth cycle. We have already been approved as a potential supplier to a European client, I see the possibility of upcoming orders as being a reasonable assumption, once there are rounds of stimulus and tax incentives provided through European governments to facilitate growth in that region.
Happy to hear more of your thoughts on the situation.
ASM Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
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