They're taking a long term view on it - there's plenty more to come from Hermosa and this current investment in infrastructure will be the key to be unlocking the potential further down the line. When the cycle turns it's the companies who have capacity to respond to demand quickly that clean the floor. As we're seeing right now, companies who are slow to react and spend the boom periods of the cycle bringing projects online get killed because by the time they're up and running the horse has bolted.
This is a very good long term and forward looking decision by S32.
S32 Price at posting:
$2.94 Sentiment: Buy Disclosure: Held
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