Ann: Sandfire Approves Development of new Long-life Copper Mine, page-12

I'm out for now to consider LT proposition. Worse than I hoped for, not unexpected given the share price action leading up to DFS release. Really major deterioration in all metrics except for the metal price, thank goodness this was released into a boom. No post-tax NPV released that I can find, getting pretty skinny for the investment SFR have made into this project (ie capex + $150M working capital + MOD purchase cost + exploration/development since...).

A4 is also disappointing imo. I assumed no mineralisation outside the main three lines of drilling along strike (ie green proposed holes closed off deposit) and put the 2019DFS stage 2 pit shell over 600m of the deposit and got 8Mt @ 1.5% Cufrom a rough section est. Resource today only 6.5Mt @ 1.5% Cu, looks like drilling not just close off deposit but ore lodes broke up into thrust and extensional lodes that added up to something less. Assume 80% of this converts into a mining reserve and you have maybe enough for 1 year's production at 5.2Mt pa. Grade will make money after extra new mine capex etc, but I just can't see the 5.2Mtpa expansion happening without better success elsewhere at much bigger tonnes. No talk of underground mining any more, A4 grades and thickness just don;t look likely either from the section drilling figure in DFS.

Came in late and left early, happy for the interest of it but just feel the market might consider the downgrade worse than already low expectations. Good luck to holders.