Ann: Revised Kaiser Resource Est Improves Confidence and Grade, page-61

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Antipater_100

7,598 Posts.

1425

30/04/24

18:58

Post #: 73592082
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Originally posted by speculator101: ↑

Cheers for that prhb,
perhaps ALK should simply refine the highway bypass and forgo the Roswell open pit ounces (whilst converting what they can to U/G in Roswell), thus shortening the length of the bypass, removing the need for a overpass over Kyalite all together. The ALK team is free to use my example in future presentations Yes, the mine life would be shortened, but... ALK is very confident they can extend Roswell, plus their past mining and orebodies close to the plant have extended far beyond their initial reserves (plus, the open pit ounces are not going anywhere!). I am not against doing the highway etc, as it will hopefully still be extremely profitable and enable Tommi to have long mine life, as just because things cost more, does not make it any less profitable, if as others have pointed out, the POG moves higher concurrently. Pushing back doing the major works makes sense, as it would enable ALK to rebuild it's cash position and hopefully fund a much larger exploration program on all it's assets, then take the time to refine and cost effectively expand Tommi.

This could potentially (thumbsuck), 1/3 to 1/2 the cost. Less time to complete. Sure... it would take a while, but... they have already gone through all the studies and permits. Plus, they can just focus on the U/G and not need to upgrade the plant throughput wise until required. It can process around 1.1mtpa, so it's just about grade in the near term...

Would be so interesting to know what the minimum depth is for U/G mining under highways etc?

Obviously many are unhappy about ALKs underperformance, but... once they update the market on the LOM plan and guidance for FY25, I think sentiment will finally start to change. We will see of course.

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I have been communicating with someone from ALK over the last few hours and here is what I am happy to share. I can't share everything as it's not going to be fair at this point.

ALK still does not have highway estimates and without this they can't update much. I pushed really hard why the MD can't communicate this message clear to the market.
It seems (they have not admitted openly but seems that way) inflation have impacted capex but it looks like they have messed up with some costings - my conclusion.

But the main point is ALK does not have highway estimates.

also:

If I remember right, when the CFO was p[resenting he was still of the view they will relocate the highway and mine all the pits as per original plan.

ALK Price at posting: 62.5¢ Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

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