Morgan - I was thinking yesterday whether or not PK should be persuing the extra oxide ounces so aggresively or not.
You may be quite right about just getting into production asap .
PK's trying to find the extra oxide ounces to save intial cappex requirements , debt and dilution.
The intial extra oxide feed means that they can defer the float/regrind curcuit and save the company around $50million in intial cappex. Build it later out of free cash flow....
But there comes a tipping point where persuing the extra oxide ounces will cost more than the float/regrind curcuit would anyway and becomes counter productive to what he's trying to achieve.
But kitto is smarter than I , and must be confident in finding the extra oxides in a suitable timeframe (he may already have them) He would've weighed this decision carefully.
AMX Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held
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