RE:6+6+6 Mtpa Fails to make the GradeLOL. It would be prudent for you to shut up already. You know nothing Jon Snow.
bloomfield18 wrote: The BMO report assumes that Kamoa, Kakula Main, and Kakula West will all produce 6 Mtpa. This formed the basis of their $8 price target. For the first two years each separate stream would produce 3 Mtpa, and thereafter 6 Mtpa sequentially. For the first five years grade would be 6.5%. Therein lies the problem.
Out of 20 drillholes released from KW, at the 3% cutoff, only two were higher than 6.5%:
DH 1163: 5.28m at 9.54%
DH 1177: 9.62m at 7.57%
2 years at 3 Mtpa + 3 years at 6 Mtpa = 24,000,000 tonnes at 6.5% copper. How can anyone arrive at such a large value from just two drillholes?
Furthermore, only 5 of the 20 drillholes, or one quarter, exceed 5.5% at the 3% cutoff.
At this point it may be prudent for investors to assume a 6+6 scenario, Kamoa and Kakula, where Kakula West is simply an extension of Kakula Main. They could still go with a 6+6+6 scenario, but it may be at a lower grade.