An interesting post this morning and for those who believe I have been a bit bullish I hope you read each and every announcement Carnaby has made in the last year before you decide to invest in Carnaby shares, also then compare their results with other copper-gold discoveries and mines. Then factor in commodity price forecasts, market forecasts and seek financial advice or training - Hot Copper is not financial advice but does provide a little context some times.
You must always do your own research and take responsibility for your investment decisions. Anything I post is not financial advice and I am not a registered financial advisor.
I have said many times on Carnaby and other threads that JORC Resources are assets and everything else is exploration potential. I have also said many times that I have no idea what share prices will do, also that commodity prices and market fluctuations can often have as much or more effect on share prices than discoveries.
I would urge all HC users to read all posts I have ever made in relation to Carnaby and build a picture over time. It will give my personal journey and you will see that I have not worked as a geologist since 1990. I am not a mining industry professional in the current practising sense although I am a qualified geologist. I have been investing in exploration and mining shares since 1987 and have offered my personal investing experience on HC, I have made almost every mistake over the years. Sold BD1 for 3 cents for a 100% profit only to see it carry on to several dollars, etc. etc.
Nothing is certain when it comes to shares, a great discovery with low commodity prices does not necessarily give shareholders a windfall.
When investing you must take the Carnaby statements into account as they have far more information and authority than I in relation to the potential of their projects. Carnaby have compared the results from the Nil Desperandum and Lady Fanny discoveries to Degrussa and said words to the effect that drill results like this have not been seen much since Degrussa.
Carnaby have many times now said, "Major discovery." "Significant IOCG discovery" and in the latest announcement the Company’s Managing Director, Rob Watkins commented: “These stunning drill results clearly demonstrate the resource and development potential of the Greater Duchess Copper Gold Project. We are discovering and building a pipeline of exceptional and highly desirable copper gold deposits whose intrinsic value will only grow over time as we define and grow the maiden resource and move towards a development timetable.”
Clearly the company believes the deposits are exceptional, their intrinsic value will rise over time, that they will define a JORC and progress mine development.
As to my statement in my post on the announcement, "One thing that I take a lot of comfort in is that the grades, widths and depths mean this will be a copper-gold development project with very robust economics. The kind of project that should make good money at US$6,000/t copper. This will be a mine with several pits and eventually underground extensions." To explain further:
What changes if the copper price falls to US$6,000/t is that the cut-off grade for JORC resources and PFS, DFS is raised to ensure the project economics give a reasonable IRR, NPV and profit. This means that high-grade mineralisation is included in the mining scenario whereas with high commodity prices more lower grade mineralisation is included. By robust economics I am saying that my view (DYOR and make up your own mind) the grades, widths and depths allow for a higher cut-off grade to be used ensure a profitable project at lower copper prices. This is not the same project/mining scenario as when commodity prices are high. Low grade, deep or narrow ore bodies may not have the luxury of being able to increase the cut-off grade to cope with low commodity prices, for example the 0.24% Cu PFS I referred to for another company in a recent post. Carnaby, in my view, has the ability to adjust the project for lower commodity prices because of the high grade overall and "stunning" high grade shoots, decent widths of mineralisation and shallow ore.
I have been saying on HC that this will be a mine since the middle of 2021. Now Carnaby is saying they are "building a pipeline of exceptional and highly desirable copper gold deposits whose intrinsic value will only grow over time as we move towards a development timetable."
So do your own research, take responsibility for your own investment decisions and recognise that anything posted on Hot Copper is not investment advice and should never be used in isolation to broader research to justify an investment.
Enjoy the journey of Carnaby with a constant flow of drill results for most of this year and a JORC in the next year or so. I am guessing the JORC will spur Carnaby to undertake a scoping study to investigate project development scenarios.
Back to my palm tree.
CNB Price at posting:
$1.20 Sentiment: Buy Disclosure: Held
(20min delay)