Staff and admin costs are too high considering nothing substantial is occurring. At this stage you could argue they would be better with reducing numbers and relying on consultants to do what’s needed.
Sustainability report and policies will be a requirement by BHP. The report is a bit over the top and they could have got away with a lot less to satisfy BHP.
Penikat is really interesting but until permitting regime changes it’s a pipe dream, even if it’s tier 1 it could ever get in production. The exploration is one thing but the production license and environmental requirements would probably make any discovery uneconomic.
Saying all that, this is cheap at cash backing. You are getting the BHP JV projects for nothing. If the team pull off a great new acquisition they have money to spend. I just hope they aren’t travelling business class and taking too many staff along to site visits etc. I had some concern when Fabian says he was at PDAC to ‘look for new projects’…. Is that really the place to go to to look for new projects? The conference booths aren’t manned by the people you want to discuss acquisitions with (often no)? You also know who is going to be there and their projects as it’s all online before the conference…. Sounded to me like it was an excuse to attend.
Lastly, timing on acquiring a copper gold project is not good. Will be lots of competition and companies will not want to let top projects go easily.
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