HOORAY!Hermosa is away! We can overlook that S32 has already...

HOORAY!

Hermosa is away! We can overlook that S32 has already spent near $US2b on the project and making FID official was a formality.

WMC/BHP/S32 made sooo much money from Cannington over the years. Base metals may not be glamorous, yet can be very lucrative. S32 knows the technicals of digging and processing Zn-Pb-Ag orebodies, the metals market and the impact of this extra supply.

Bottom quartile cost.

New Mexico a Tier one jurisdiction.

Fully funded internally (!)

Electric elevator shaft design clean, green and cheaper than trucking ore up ramps and tailings back down.

The initial $US2.2b Taylor capex is just the first step in developing this globally significant group of metal deposits, funding later stages in turn.

Hermosa doesn't solve the problem of current low metals prices. S32 barely broke even last half. The largest sensitivity is to alumina prices. Watch it fly when - that's when, not if - alumina prices rise.

Y'all can wet your pants over battery metals and the electrical revolution. My read is the biggest demand surge will be in Al and Cu. I have bet accordingly.

I consider my holding in S32 is at equal-weight. If it gets any cheaper I am very willing to go seriously overweight, the prospects here are so attractive.

Ash