I just dunno. My theory now is that they might not get much of a positive NPV return from the oxides with all the capital they have poured and poured and poured into it, with yet no guarantee that it will even work as it should. And you can bet they will have to spend even more capital on remedial work once the attempted commissioning highlights serious deficiencies in the plant, with consequent further delays, horrendous financing costs, falling copper, nickel and cobalt prices and zooming sulphuric acid and opex costs etc. There is no reason why it can't all go totally pear-shaped from this point forward. The odds are definitely over 50% that it will happen, IMHO. A high-risk spec is CMR.
This reminds me of MMN and JML except JML is more professional and MMN about the same on the management level, ie double plus ungood in Orwellian-speak.
I will have to offload what I have left on a decent dead-catter to eliminate risk.
One last thing, royalties in the NT are 18% of net profit from the mining operation, this needs to be factored in to anyone's calcs and is a big cost. There are offsets for depreciation and exploration expenditure.
A huge resource upgrade is irrelevant right now.
CMR Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
