Joining the long dots, page-16

Finally got around to reading this report (too confident to have a sense of urgency!)

I note that they are extremely conservative in their valuation:

"Both indicate that the deposit is there and that AML can find it cost-effectively. We increase our exploration valuation to $180m, which implies a ~20Mt possible Resource (vs 15.7Mt currently)."

1) they seem to ignore the py1 cobalt peripheral resource (18Mt @ 0.11% Co) while acknowledging its existence and extension along strike
2) they award the demonstrated tripling of the strike with a 30% increase in total resource, which means that they assume the new areas of the py3 will be 15% of the quantity of the existing resource
3) they are working off the PEA mining inventory of 3.6Mt
4) and arrive at an exploration target of "about 20Mt".

It's good to be cautious and tentative to not raise false expectations. But I think it's going to be a lot bigger than 20Mt, just quietly. 15% seems a little pessimistic, after the core and models we've seen.