$60m is the total costs to first pour. The refurb component is only $12.7m. The upgrade component is only $18.3m. Anyhow, $60m of funding and POG at AUD$2,500 is what it would take to have a cash flow positive operating mill based on MDI’s existing open pit resources (noting it would be marginally cash flow positive without the upgrade, so comfortably cash flow positive with it). The question is where do they get $60m from? Either POG has to go way over AUD$2,500 (maybe AUD$3,000 starts to get interesting) or they do some bankable deal with a third party for some higher grade feed to help with cash flow in the first couple of years. It’s disappointing no question, but I still like the asset and want to see it play out. Shame AME wouldn’t come to the party. I’ll never understand that one. Barkley has major interest and upside. Our MC excluding cash is less than $15m, and I would have thought Barkley covers that on it’s own. All the other East Tennent companies use MDI’s copper discovery in their own anns, as a sign the region is the next big thing.
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