Hoggle, CBHs plan is to use the spare capacity to process Hera ore ,through Endeavour ,I think from memory that takes Endeavour output to about 1.65mtpa .Depends if you want to call it Endeavour production or call it two separate productions ,admittedly Hera probably wont start until late this year or next year .The result on the bottom line will still be the same .Production capacity at Endeavour is also very conservative .The higher grade ore they are milling now is also softer ,so we can expect higher throughput and higher recoveries compared to last Qtr ,on top of the higher grades .CBH have made lots of incremental improvements in the past 2 years and we havent yet seen the fruits of this .Dont forget the copper circuit that will produce 700tpa ,It all adds up .CBH have the cash to build Rasp ,and have spent a lot of money on the declines etc,but if they didnt need to build a mill ,all that cash could be diverted to Panorama or other projects ,like Sorby .I believe both companies are drastically undervalued as they are ,and with $200m of synergies if combined, would be a fabulous place to park your cash .Make no mistake ,this entity wouild be massively rerated if it took place . I was thinking Rasp would probably be worth $100m as it is to CBH also ,but the value would be more to PEM simply because they woulnt need to spend the same money .I cant see why CBH would just sell something for what its worth undeveloped just to help out PEM .Thats their business developing mines. Cheers
PEM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
