Production Report Highlights- 1 month in Polyanna made a 20% difference over Q1 production - from 22M to 27M lbs - which equates to 37M lbs in the next 2 quarters... "In June, mining operations transitioned into higher-grade benches in the Pollyanna Pit which resulted in a 20% increase in copper production over the first quarter, in line with management expectations."
- Q2 avg LME price was $4.40 in Q2 ... 27M x $4.40 = $119M Revenue vs $87M in Q1
- Assuming steady state 35M lbs production to end of June 2022, second half of 2021 has $3.85 put options (35M lbs x $3.85 = $135M Revenue each quarter); first half of 2022 has minumum $4.00 puts (35M lbs x $4 = $140M each quarter)... "These contracts secure a minimum copper price of US$4.00 per pound and a ceiling price of US$5.60 per pound for 42 million pounds of copper over the first half of 2022."
- They continue to make advance what they can without the permit, including deposits for SX-EW plant; with their conservative management style, I don't think they would be doing this without full confidence in a favorable permit decision, albeit frustratingly later than expected... “Detailed engineering and procurement activities continue to advance at Florence.We are now preparing to make initial deposits for major processing equipment associated with the SX-EW plant, which will allow us to efficiently advance construction activities upon receipt of the final permit."