Copper Update Video

Copper Update Video

OK, I watched the video, 14mins and lots of tasty nuggets throughout

Summary

· To decarbonise you have to electrify everything and you cant make an electric motor without copper

· There is limited supply of copper, it is very hard to ramp up existing production, and new projects take decades to discover, approve finance and commission – look at Oyu Tolgoy, is been over 20 years and still years away

· Rex has a great project, and it has a mining licence and environmental approvals

· Stage one 13 years

· Stage two 13 years

· And potential for stage 3 & 4

· … So a multi generational asset

· AISC $1.60 so lots of margin headroom

· Low capital intensity

· Power, Port, Roads, Town, Water all in place so less capex and carbon emissions to develop

· They are on grid power and in Sth Australia over 50% of the grid is renewable, so the very material necessary to decarbonise will have very little carbon footprint and when they replace truck fleet with hydrogen it can be zero emission. Lots of wind and solar on the York Peninsula

· They have dominant land position. Carrapateena and Olympic Dam under half a kilometre of cover making it hard to explore and drill. Where Rex is very little cover making it easy to explore

· 4 times the brownfields exploration potential without even extending beyond the granted mining lease

· And after stage 1 is complete, there is 12mt of high purity magnetite iron ore that has already been mined, moved, crushed and stacked in the tailing dam. That’s worth $2billion at todays iron ore price

· After stage 2 there is another 12mt of iron ore …. So another $2b at todays price

· This is a valuable asset at the end of theproject with no carbon emissions as it has already been mined and crushed usingrenewable energy.

· Moving forward, the providence of resourcesand their carbon efficiency will factor in prices. A premium for clean, green, environmentallysustainable operations will be paid and Hillside is perfectly positionedcompared to other projects.

GLTA
DYOR