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01/10/21
18:46
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Originally posted by nuadrehc:
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That Odysseus is hard work? - It is. Its hot, deep, wet, seismic, mafic, high CAPEX. Have you been down in the Odysseus underground or are you relying on third party information? Was it hot? Yes, but not unusually so. Anything that's this deep is going to be hot and humid due to the ambient temperature of the rock. It's about how you manage the ventilation. Have you been underground in some of the deeper gold mines in WA? They're similar. It's deep? You seem fine with your investment in 29M. The working levels at the Scuttles and Gossan Hill orebodies at Golden Grove are already deeper below surface then the levels that WSA will be mining at Odysseus. And most of the Golden Grove resource extensions are around 1,500m below surface. The decline and working areas were certainly not excessively "wet" when I was down there. Is there seismic activity around Leinster? Sure, but that doesn't stop BHP who have been mining in similar conditions or all of the gold miners. And WSA will be backfilling with paste fill. And if you've been underground you'll know that the rehab has been done to very high standards. Is it mafic? Yes, so what exactly is your point? Just saying it's high capex is irrelevant without quoting the returns on that capex. Mt Goode @ 06% Ni - how many UG mines can turn a profit at that grade using anything other than SLC or BC? I don't think anyone actually thinks Mt Goode gets developed at current nickel prices - if you look at the historical resource it has a 0.4% cut-off grade. The point is it's a growth option if the nickel price moons from here. All mining projects work at a certain commodity price. If you don't think the nickel price rises why would you invest in a nickel company? That Forrestania is almost done? - It might have 2yrs left? Watch for the slow production drop off as remnant mining contributes more and more. About the only upside I see there is a re-invigorated LOM through to exhaustion, tighten up the production schedule, grow the remaining NPV. It's not new news that Flying Fox is approaching end of life in the next few years. And they've already provided guidance on what the next few years looks like. If that's all the future upside you see at Forrestania then I'd encourage you to go back and have a look at the old New Morning and Diggers studies.Keep in mind that the news about IGO being keen to do DD on WSA was leaked from WSA....it was in their best interests to leak it. Should we be surprised no-one else has expressed much interest yet? I mean if something is good or scarce there is generally a bit of frantic competition. Crickets here so far.... Do you know for a fact that WSA leaked the IGO interest or are you speculating? How do you know for a fact that no one else has expressed interest? If you were considering making a bid for a listed company why would you announce it publicly? MCR is still the pick for me (a bit overpriced now)....but look at what they have achieved in the last 2 years, only now starting to re-look over the unloved Kambalda projects. Agreed. Although, I still would like to see a deal go through as I think the IGO/WSA tie up could be good for Nickel in WA. Also agreed.
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Great commentary - well appreciated by someone such as me not in the industry. One point you could also have made though about Forrestania. Whilst FF is just waiting for the fat lady to sing, my understanding is the Spotted Quoll still has a few good years left? At least we all seem to agree about MCR, LOL. EL