The world under invests in mining. When the price is low and then they realize that they need more copper, more people rush to develop projects that are now economical due to another price rise.
Glencore has taken all of Australs (AR1) copper at market prices and paid $21 million dollars upfront. Why would you pay $21 million now, for copper you will receive later. This would be unnecessary unless supply was an issue. Seems to me they are not concerned about a recession and if they are then they still think copper will be in demand. Seeing as it is at market prices, It's not like glencore are hedging. The only reason could be to lock in supply. They are impressed with the quality of copper cathode.
Here is another Glencore offtake from March 2022
Binding Glencore Offtake Agreement Executed
• Evergreen with a minimum 5 year term
• Covers 100% of copper concentrate produced at the Jervois Mine
• Delivered by road to Mount Isa
• Benchmarked pricing for payables – Copper, Silver and Gold.
Once again it is somewhat beneficial for them as it is their smelter it will be going to. Still, it is at market rates and KGL would have probably used them for their concentrate anyway.
KGL expects to deliver a restart study by mid year. They still have drilling to do. They have a high grade 2% copper for 466kt of contained copper with some silver and gold credits but 2/3rds of their resource is underground needing a cut off of 1% Cu.
Much less copper, no restart study and they are valued at 150m market cap and well off their highs.
RRR is valued at 71m market cap without a maiden resource.
CYM has over 900,000t of copper at Nifty alone. Although the mineral estimate increase of 28% didn't include much oxide. There are assays remaining in the eastern zone that are due any day that could add copper tonnes to the PHASE 1 Oxide pit.
I struggle to believe CYM couldn't secure an off take if those two companies have recently. We offer more copper, less time to market and a long life mine. Not that an off take is necessary with our product but it would bring a cash injection at no interest rate.
Restart study - The
eastern cutback will be
developed first to access higher grade ore near surface and will encroach into the
influence of the existing underground subsidence zone.
The East results from the last campaign weren't that great but i suspect these were further east of where they will begin phase 1. Hopefully they find some significant copper mineralization in these results that are due which will further increase the economics of phase 1.
This makes Nifty the 6th largest development copper project in Australia
The highest grade in that group
All open pit
And the only near term producer of those projects
@magmabaronI also agree with the fustration you share in regards to salary and timelines. But I felt this way during the delay of the restart study. During that time I was losing faith and paper loss was increasing. Now, not so much. This stock has definitely taught me to be patient. The project has been de-risked significantly now that the facts are out there. Bare in mind it says in an ASX announcement that financing is due by the end of Q2. We are not there yet. So I'm happy to point the finger then. The 'i hope to release some news early May' is just another enthusiastic comment that shareholders have taken as gospel. But I agree he needs to stop doing this and keep the trust of loyal shareholders.
