conversation

I spoke with the company today - first time for close to a year.

They have a very high focus on Trilogy.
The continuing metallurgical analysis (they believe team doing this to be the best in Australia, and likely in the world) may come to a reasonable degree of certainty on project wide recovery rates in the next three months. I get the feel that the economics are already feasible.

SN made the point that with the multiple minerals within the orebody, the project economics hinge more on recovery rates, than on production costs. A few percentage points increased recovery rate could make a hundred million dollars or more difference in revenues. This means that the money and time being spent to understand mineral composition across as much of the ore body as possible - is time and money well spent IMO.

As also announced in the quarterly, they will be undertaking a geophysical survey of the Trilogy area, to see whether there are extensions of the body. SN made the point that bodies of this type (massive complex sulphides) are often clustered near to each other. If this proves to be the case, the economics would be better still (same cost base, larger resource). If not, the project can still proceed on current size.

I raised the share price & this lead to a cash discussion.
Cash wise - as per quarterly, they have about $4m cash, and a further $4m in investments (under escrow until late this year). Given that they are being very targeted in expenditure (only on things on their critical path), I got the feeling that they can exist for a while on existing - and expect shareprice to be quite a bit better (based on future announcements & market conditions) when they come to market again for funding, or BFS.

My take away - a very methodical and careful approach to their Projects, which give me confidence.

IMO, Trilogy is already commercially viable, and they are fine tuning the recoveries, and crossing all t's and dotting the i's.

Certainly bargain basement prices for the willing.