RE:RE:RE:RE: North Zone / West Side 3D-IP Analysis (update) - Part 5I'd point out a few things that may or may not be immediately obvious.
1. Rising copper prices and improved grades lead to disproportionate increases in valuation.
2. Rising copper prices drop straight to the bottom line as pure profit.
3. Improved grades lead to drops in on-site costs (taking less drilling and processing effort to yield the same amount of copper).
4. Since annual processing capacity at ST will likely be capped at 35-45 million tons of ore, the most promising zones wouldl be mined first.
5. The bigger the improvement in the mine economics in the earliest years of its operation, the more powerful the increase in valuation (due to the time value of money and the effects of discount rates on cash flows from later years).
If you think that ST's grades (across all of its various zones or pockets) remain flat and that copper prices have peaked, then your unpopular take may be right. Otherwise, all bets are off, or on, as the case may be.