Esperanza south (ES) is separate from Esperanza the pit (E pit)....

Esperanza south (ES) is separate from Esperanza the pit (E pit). The ES water was moved to E pit and as a result E pit water level did not change during the quarter. The company is seeking approval to deposit tailings in E pit. E pit holds water in the gigalitres magnitude. Unlikely to happen quickly, safe bet is rule out E pit.

Took more time to digest the Dec-23 qrt report. Noted the below risks for GG (on top of the all the said CC risks).

• GG was cashflow negative in Dec-23 qrt
• GG C1 cost drop is significantly helped by stockpile movement in the quarter. Only so much stockpiles can help.
• GG 2024 cost guidance is increasing across the board. Especially in the processing.

Unless copper price significantly improves to at least $4-5 US/lb in the short term to generate positive cashflow at GG and then some to cover CC. If nothing changes this one is going downhill. The escalation of costs is not unique to 29m, it is across the board in Aus mining operations. Difficult to see costs coming down. Not looking good, company definitely need CR and hopefully do it before price tanks more.

I am sitting on sidelines until things improve. DYOR