I originally said on HC that I thought AZY should let Rio go to...

I originally said on HC that I thought AZY should let Rio go to 75%. I have poured over the data and I have come to the conclusion that I was wrong. If AZY can fund the exploration and resource development work to keep 35% then they should.

There are many good reasons for this that have been put forward on this thread, for example:

1. AZY will have considerable amounts of information on exploration and the Calibre/Magnum resource upgrade that is not yet public. This is informing their view that the project is undervalued by the market and the JV expenditure terms.
2. The prospects at Rimfire, Boxer and others are all potential game changers. We are so close to finding out if we have a whole new deposit or two.
3. If the Calibre/Magnum deposits are drilled out and the hot exploration prospects are given a decent exploration programme then AZY and the market will have a more accurate view on the true worth of the stake in the Citadel JV. Suffice to say it is likely to be going up not down.
4. If the copper price increases as Goldman Sachs have forecast then the value of the deposits will increase. Gold price increases likewise.
5. Calibre/Magnum have considerably more metal value per tonne than Winu and Rio's action indicate that they anticipate a stronger investment case for Calibre/Magnum than Winu at this stage.
6. By keeping the 35% until the full or true value is better known then AZY is in a better position to negotiate with Rio over the mine development phase. Who knows, AZY may need to give up some or all of that 10% to fund mine development.

At this stage in the copper and gold price cycle perhaps they need to bite off as much as they can and chew like crazy.