RE:Photo : Thanks for your comments - which I understand!Rock -
Thus if you could comment on my REVISED interpretation:
It is important to appreciate that we are dealing with a New Technology:
Thus we have a first hurdle to get over = WILL THE TECHNOLOGY WORK?
This is a new and separate RISK. Which doesn’t apply to most copper mining!
Would you be happier if I simply said :
“Excelsior is subject to both the normall risks associated with the future price of copper, and . In addition it is important to appreciate that Excelsior is employing a new and somewhat untested technology for separating the copper from the host rock.
Thus Assuming that Excelsior can effectively deal with the technology challenge then the estimated stock price should fall between $4 and $10. Per share in the next 4 yrs”
Is this a better categorization of your comments?
I'm not entirely clear on your questions regarding my post, but you bring up an excellent question, "Will the technology work?" You are correct in saying that ISR risks don't apply to most copper mining. At the end of the day, that is the purpose of Phase 1; proving to the world that ISR at Gunnison is a cost-effective method of mining the copper oxide below.
Preliminary results from June until now seem to be very encouraging according to the posted NR's to date. The fact that Excelsior has turned on the rectifiers for the electrowinning circuit are proof positive they have sufficient copper concentrate to start plating cathode. So, I think we'll have your question largely answered in 1Q2021. And I'm optimistic that it will be better than the conservative estimates presented in the FS.
The NR's identify a couple issues that require optimization, such as CO2 gas bubbles forming when the acid hits the carbonate, etc. But the tone of the NR's gives me confidence that management does not consider the issues to be high risk. Time will tell.
The key to realizing full valuation is the timeframe it takes to persuade future investors (wholesale and retail) that the ISR process works and works well. As the numbers are published and they meet/exceed performance targets, then I think it is reasonable to assume that the market will be more forward-looking and the PPS will rise to reflect the enterprise value.
PG