" As for the capex, they are not saying its optional, but that its necessary. There is a big difference. If you are pinning your hopes on that, you are deluding yourself."
from MBN,
" 1.The Company expects to carry out a substantial tailing storage facility wall lift next year; and 2. The Company expects to increase mine material movement to approxiamately 50Mtpa next year, in line with the LT mine plan, which will increase the capitalised mining costs"
Firstlt, the capex is hand in hand with ramping up to 50Mtpa, or tripling this years sub 17Mtpa. So you shouldn't need one without the other. Cash costs should reduce with higher volumes. So the strategy seems to be ramp up, produce at a small margin and see what happens....
It's either gutsy, stupid or both.
MBN Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
