IBW a +$1 billion dollar asset as-is today Drjimjones There’s a whole list of data points. Such as the grade/value per ton is 58% higher approximately but the cash flow per ton is closer to 90%-100% higher for Emo when applying a steady state cost per ton for mining and milling of 100-120$ per ton as stated by David Gower simple example it cost $1 to mine and mill. X = 1.50$/ton value y = $2/ton in metal value. X cash flow = .50 y cash flow = $1. Conclusion: y has a grade 33.3% higher but cash flow per ton is 100% higher. It’s in the math. And the math is the math. Under the above 1 ton of y is more valuable then 2 tons of x because in the end after transportation smeltering, waste etc that 1 ton yields more cash flow. This is why Ibw grade is remarkable. Its 14mt produces approximately the same cash flow as 30 Mt of Matsa inferior blended grade. Enjoy the weekend. The math is the math, the data is the data. Add just 2mt more the cash flow from those 2 Mt tons pays for the development and construction of a mill. Add 3 Mt and over the long term with a constant mining/milling cost IBW produces more cf then Matsa. The expansion of Ibw has been quoted to add around 20mt before any additional discoveries. Just do the math. Are we worth at least a billion? Do the math.
I didn’t create the chart another investor did. He wanted to vet the data for himself. Surprising right. It’s about the end result economics. The big picture. Apply different recovery factors and see. https://cdn-ceo-ca.s3.amazonaws.com/1gkemv5-7FD7DB06-6027-4FCB-8EED-7BF2057D00B2.jpeg
we haven’t seen the EM survey yet but have had hints like “conductors extend below 400m at La Infanta and Romanera in depth”. It’ll be very interesting if the conductors extend horizontally as well. El Cura has had very little drilling none of which deeper then 100m. La Infant is dipping shallowly west towards El Cura area so if the strike is extend further then the 1200m being tested now, the size of La Infanta alone could be far beyond the 5-7mt modelled. La Infanta could be the edges of a multi KM long deposit. Just a Hypothesis until the release of EM data confirms or disproves. As stated I think Infanta, Cura and Romanera will be +30mt when we get the 43-101 in 1h 2022. With the plan to run 5 drills it’ll happen very quickly. Sept 17th came and went with no challenges (I checked with city of Paymogo) so Emo is cleared for final stage to begin Romanera drilling very shortly.
Matsa being sold for +$2 billion Hudbay and southern Copper bidding for it, Rio Tinto and South 32 also were interested.
Best
Doc Jones
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