It’s tough to stay positive after this. The resource growth is...

It’s tough to stay positive after this. The resource growth is weaker than expected. Royalty payment KPI for 400,000 Cu metal Tonnes is not achieved. If the PEA doesn’t deliver strong numbers, we could be looking at a long, uphill battle to get any meaningful value out of this.

At 5 cents a share, it feels like we’re at the bargain bin level for this arctic copper deposit.

Negatives:

• Missed expectations - falling significantly short of 300-400 K cu metal T market expectations, Yes, a big shock!!! The Gap resource didn't make it, and Cyclone North/South extensions were limited. My earlier guestimate was at least 14 Mt too much for achieving the tough 400,000 Cu metal tonnage target, thus more drilling now required. AW1's revision lowered the inferred resource significantly to successfully build up the indicated resource which is beneficial for the PEA and Ore Sorting. eg. given its higher confidence which in turn lowers development risks.
• For the ~$18 million spent on FY2024 exploration to add an extra 23,500 tonnes of copper (worth $300 million), it reflects a discovery cost of $766 per tonne of Cu, but on a positive note: $18m in exploration created $300 million in additional copper resources.
• Dilution Risk if a capital raise a 3-4 cents per share occurs. Need $15 to 20 million for another big drilling season!!
• Declining Grade from 1.2%Cu to 1.11%Cu to get 228,500 tonnes of contained copper (~AUD$3.3 billion)
• 14 years feed for an Ore Sorter Plant, is this enough to extract $1 or $2 billion from this resource?
• Extra pounds of copper are more likely to be sourced from Cyclone Deeps or at depth within the region, hence higher mining costs. Although, The Gap, Squall & Hailstorm prospects offer some shallow mining upside.
• What is Taurus Royalty payment plans? No more development payments until 2026 or do they offer any DSO development advancement assistance to start revenue flowing in coming years.

The company needs to clearly articulate its strategy to bridge the gap between the current resource and the scale required for long-term project viability. Interesting times ahead.

Of the 10 million shares traded so far, many are prepared to invest at $0.05 levels after this news.