RE:Om going up 4xOpportunities present themselves when there is a paradigm shift in the economics of any project or company.
My new investment thesis here, is based on this significant turning point !
Pine Point, at $1 zinc and lead, still is economic, as cost to produce was 67 cents..........but not a lot of room for margins of error.....and hence, been kind of a slow burner project as stock has been eroding in confidence in invester community........... NEW PEA in May to show better cost structure and larger revenue stream............
At higher prices.....Pine Point.........much more bankable, from a lenders perspective.............and clearly they are finding more lenses of good grade near surface, water issues quantified and more favourable economics for water mangement..............All infrastrucrture in place with locals on board.......Bankable feasibility study to start late fall..........shift in perception to take place going forward
Glencore copper addition............after 8 months of modelling and due diligence............means more value and metal diversity............at all time highs for copper as well.
Glencore, welcomed as a strategic partner, is a BIG event.............offtake agreements for both projects will ensure quick turn around for project financings and institutional confidence. Glencore is happy to get their mitts on a piece of Pine Point as well............
Glencore's Metagami camp is done in June, shutting down after running for 59 years, siince 1963. The last mine of 12, Bracemac - Mcleod mine is closiing down for good..............US and China are net importers of zinc and copper needs are creeping higher.........Glencore internal study reveals, mine inventory running off with not many new projects coming on stream in next few years...........DEFICIT coming and not far down the road.........$1 zinc is now historical !!!!
Wares, Burzynski, and Roosen.................... winning the "PDAC Mining Men of the year " in 2009. for their impressive job on Canadian Malarctic...............are still a strong team running OM, OSK and OR and continune to add significant value for shareholders........so it;s people, people, people with industry respect ! Glencore, obviously, trusts them as experienced mine builders !
IMO.............. Big picture thesis ...................we see $1 - 2 before we see 40 cents again.............
GLTA