i havent worked there, but slept with a few blokes who did. It's not that i don't "like" odysseus, the grades and size of the deposit for that style are outstanding - but it is deep and has no mining history. It's still a virgin (shhhhh . . . .)
and mining history when xtrata owned it, there were ground issues at a shallower and similar deposit at the same mine - big ones. It could be xstrata effed it up and WSA will take a smarter approach, but Xstrata were no dummies. Of course I say that if you ignore they paid $3B for the asset at the top of the last nickel boom, but I disgress. . .. they know mining and they know mining nickel.
as anyone who has slept with a miner knows, 'deep' and one location is not the same as 'deep' at another. so yes, WSA are proven miners, and yes, WSA are mining deep at forrestonia and had time to adapt the changing ground conditions as they mined deeper. Cosmos and forestonia are different orebody types in different ground. same same but different.
There is a lot of capital required (sunk) before WSA get there - I cant remember the last time a shaft was sunk in WA (except gwalia, which should have happened 10 years ago). It's a big ballsey call, but i respect big ballsey calls - it's just not a slam dunk in my uneducated opinion. I'm still a holder, but I've reduced my exposure somewhat.
It's interesting some posters are hating on MCR . . . I think they are well positioned to take advantage of the NP ground swell - outstanding acquisition and deal for Victor Long - the decline is right there to take advantage of Durkin North plus any other goodies around the Victor infrastructure, and Cassini is also shaping up as a high-grade discovery. MCR do not need to worry about maintaining or managing a concentrator, have new offtake agreement with BHP under improved terms. A very experienced board and management team - what's to hate here?
anywho, i need another pint of vodka. enjoy your day and say hi to your mum for me
WSA Price at posting:
$3.23 Sentiment: Hold Disclosure: Held
