Q3 Results
Even though there will be a negative settlement adjustment in Q3 due to lower copper prices, financial results should be quite good. I think it is very positive that the cash costs were reduced, as this reduction directly translates into increased cash flow. It is more "effective" than a similar increase in copper price. Nevertheless, I am not sure, if the cash cost reduction is really (only) caused by higher production and lower power, steel and lime costs as stated by the company. I suspect the moly price had a significant impact, too.
Moreover, I think it is positive that the ratio of fresh tailings to historic tailings production has been shifted towards the former as the DET royalty for the fresh tailings is lower than the one for the Cauquenes tailings. At a copper price of 4.23 USD, this should lead to a cost reduction by 0.22 USD per pound. Additionally, the "resource" from Cauquenes is depleted at a lower pace.
Now that they have sufficient cash, I hope they continue working on the recovery rates as they are still rather low compared to the design recovery rates of the expansion project at least with regards to the Cauquenes ones. I see improvemens in the fresh tailings' recovery but am hoping for more.
GLTA