Previous management's incompetence, even bordering on a misleading direction for SH/investors (including myself) and Glencore requesting government intervention to keep the smelter active as notable draw backs/foul taste to swallow aside - I'm still convinced of the exploration potential and high prospectivity.
There's numerous targets and chargeability anomalies especially at GAM at depth and I'm particularly interested in the paddock south lode target. If my calculations were correct based upon a copper price of near $9,500 USD per tonne on the old mine plan was a NPV of ~$150m/$200m, willing to be corrected on that however. I'm convinced near pit numerous shallow targets and expansion of the mine plan would show a substantial NPV in the multi hundred million dollar range dependant on copper + gold pricing.
Paul Cronin joining the board is an endorsement as I followed his time at ADT closely and he was by all measures fantastic and I doubt he would have joint here without also seeing the potential here, especially at current market cap relative to cash + prospects. I expect there to be another capital raise/injection before mining can commence but the initial operations throwing off cash flow to fund extensive exploration and speculative demand at this stage of the lassonde curve should they start hitting thick high grade mineralisation at Mt Oxide or GAM/Cloncurry would allow easy access to capital for funding requirements.
Pessimism abound at this market cap and I can't blame burnt holders including myself but it presents as a possible high return opportunity should there be no issues with the tolling agreement/smelter + management rightly steering the ship on this occasion. Worthwhile as a speculative investment IMO
GLTAH & IMO
TNC Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
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