Spoke to Michael Hulmes today regarding the difference in resouces stated from 50000tpa to 34000tpa. Now the actual BFS states under Metallurgy heading "the optimum strategy which provides the highest net present value is to initially treat 5,000,000tpa of sulphide from Little Eva in the early yrs and later 8,000,000tpa of mainly oxide ore from Blackard & Scanlon combined with a small proportion of sulphide ore primarily from Little Eva. The recovery of copper to concentrate will be 95% in the sulphides and 63% in the native copper & oxide ore." As far as I have been informed this is where the difference is, there will be 50000tpa payable copper produced, the break up as follows. In the early years they are going to concentrate on the sulphide, 34400tpa, because it has a higher value and they can pay their debts off quicker. Once they have done that the oxide, 15600tpa, comes into play. Also Michael explained how this was only the beginning and that exploration of their tenements is going to add substancial upside in the future. He also explained that under capex the purchasing of a mining fleet, 48mill, is going to save them a shet load, he explained that because mining contrators are in high demand they charge like a wounded bull, around 15% of turnover therefore NPV$981mill = $147mill in contract fees plus they feel by mining it themselves they will get much better quality control on the end product.
So I feel confident in my investment, and I suggest that if anyone else is unsure about anything call him up, he is very approachable. Look forward to further updates also. Any comments appreciated.
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