I just got around to watching that 5 minute video associated with the results from earlier this week. I can’t comment on detailed mining and processing costs, but I offer this in assessing the big picture (the most influential factors). The two big thing working for AW1 are:
1) The fact that the typical Cu mine these days is around 0.5% grades and we are struggling to find <1%. I didn’t know about the 0.5% bit for other “competitors” until I watched this week’s video. Double the typical grade…
2) The fact that we have a shallow (<100m) deposit which is nonetheless significant in size. Revenue is one thing but costs are very important - the other part of the profit equation. I think these two factors override pretty much everything else such as remote location, heavy winters etc. Add in waterless processing, good access to a shipping thoroughfare and this week’s confirmation of consistent grades…
Those are things we believed / knew a week ago, but the de-risking continues to move behind us rather than being ahead of us. In my opinion - but the MD has gone on record with the same two facts. Do your own research on this and whether you think the MD is legit of course…. Yes I’m a holder… for the long term.
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