RE:RE:RE:RE:RE:from the CC-Transcript...tony1969 wrote:
Timok is ultra high grade (28.7 mt of 3.7% copper is off the charts). I do not think high grade starved producers will sit around much longer. Again. Why wait and risk a higher share price or another discovery? Not saying it is imminent but as StewCat said a while back the price goes even higher post PFS. We now have 2 PEAs and many numbers to work with so there is much more clarity as far as true value than even last week.....
Tony,
Although a PFS will provide more confidence (i.e. less risk), the
"market" will continue to attach a significant discount until they can either:
- Deliver on production at Timok (expected 2021), and/or
- Profits at Bisha, and/or
- Success by the drill bit, and/or
- Get bought out by another company, or
- Mergers with another producer
The new approach to mining at Timok (SLC - Sublevel caving) is both a blessing and a curse.
Blessing: - Lower mining costs:
- Allows for a lower cut-off grade
- Longer mine life
- Higher profit margins
- The orebody can be mined at higher sustained rates when steady-state is reached,
- No backfill required (a point that was not addressed in the original PEA with Sublevel Stoping).
Curse: - This project has added a significant amount of schedule risk,
- Execution risk, and
- Mining planning risk as it relates to draw strategy and the lack of mining flexibility (the start of mining is moslty impacted).
Essentially the PEA has confirm that Timok is in fact extremely profitable and the orebody is indeed there in the quantities stated (significant ore in the measured and indicated category).