Met, loving your work on helping us prepare to understand the MRE before it lands...
Separately, some interesting points on AW1 / Bay from Willem Middlekoop, which is the one I think TasTroy is referring to.Link to X is here:
https://twitter.com/i/spaces/1YpJkwRwqaYJj?s=20
And my notes from it are below:
On Resource Companies Generally
Resources company valuations were at historical lows against resource / reserve valuations in last few years and still have a lot of recovery left to make.
On Storm Project - 21:30 mins - 34:30 mins
AW1 / Bay - investors want to see that there is enough copper to ensure a mine.They sell of if there are any holes that indicate otherwise.There is proven mineralisation over tens of miles containing high grade copper.
AW1 is very well run.The mine will be in production in 3-4 years.It will start with shallow deposits.“Will use money from the shallow to explore at depth - and that’s where the big prize is” (his tone of voice appears to indicate no doubt, at least in my opinion).
No debate in Middlekoop’s mind - it is a huge Cu system - not a target - there is a stratiform Cu system and near-surface copper.“We have already had discussion with companies who are ready to sign offtake deals.”
The market sold the news in August because it saw uneconomic grades, forgetting (or having never realised) that those holes were designed to test the limits (boundaries of) the system.You never find high grades at the boundaries of the system.So Middlekoop sees those Aug 2 results as a huge success - says the market got it wrong.
The drilling season for next year is 6 months.
The CEOs of Ivanhoe and Glencore have both said there will be huge supply deficits in the next few years.But all AW1’s modeling is on current copper prices.“These projects will be developed”.
We need to find a new mine equivalent to Escondido (Chile - the world’s current largest mine) every 12 months - that can’t be done.And yet today you can buy both Bay and American West metals for less than $100M.
(20min delay)