I don't yet know any potential advantages of the existing shafts either, with the exception that they called out they will fill existing rooms with waste, minimising on-surface impact. Any re-use will likely require capex to upgrade / secure, as they've been left dormant for some time. BHP have dropped $3bn USD already, which includes some shafts ($6bn USD to go). Some analysts estimating the SHP costs at under $1bn AUD makes me think that there's some benefits available to us with existing shafts, even if it's only using the top 40% and angling off from there.
@FreedomInvestor in that recent investor presentation, you'll see that the Jansen resource is pretty much the same size as the SHP resource, albeit about 50% extra purity. If you look elsewhere in market you'll see that there are miners with less purity than SHP.
As above, nearing $10bn will be spent on Janson by BHP to get it up and running in the bitter cold north of Canada. A $50m USD market cap against SHP, with a comparable resource, can stand on its own two legs or be acquired.
The Thuringa prime minister has visited the SHP site and spoken with real emotion about wanting to get mining started again. There could very well be government support to help get this started
@cmwilson I totally agree - CEO appointment would likely give a clearer view on the strategy that the board is taking.
My two cents.... increasing costs of food is now an everyday conversation across the world. Increasing fertiliser costs is now known by many investors. Russia's war will push countries away from globalisation when it comes to essentials such as food, as will China's bans on fertiliser exports. I would aim for an acquisition or JD strategy:
Feasibility study in July/Aug
Invest half our funds into 2 confirmatory holes in Project #2
Invest much of the rest (and continued options conversion and likely CR) into progressing DFS for Project #1 / Project O
Sell / JV projects as they come online
My hope is that the worst case scenario is that our two holes have now proved our resource in compliance to JORC 2012, and that the $500m modern day cost would mean that any acquisition of the company should have that as a baseline value.... 7x our current market cap
SHP Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
(20min delay)