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Keith
Perhaps tho the slight grade difference is not that important ; key thing is SFR commitment to develop, and the economics are sound .
Imho mr Market has got this one all wrong.
The exploration will only wrap up at the end of next year and then it will be a few more years before it is mined. I think that too much can happen between now and then for investors to get excited.
Agree the comments above, but value will out.
Absent a collapse in Cu price, this is a stonking buy, and the market is looking the other way.
Some shares worry me when sp drops, but not this one.
The problem as far as the sp is concerned is presumably that the figures for contained Cu and AG are lower than in the RNS dated 21st July and ,I suppose. are seen as disappointing Even so the figures seem to have been received reasonably well in Australia as SFR went up last night, albeit by a modest amount. I also share your concerns about what it will take to shift the SP now,.It's been drifting for over a year now. It's only been shifted by IC articles and even those rises have been short lived.
I am beggining to worry that nothing will shift this share price upwards. I would have expected a modest rise on this news?
https://www.lse.co.uk/rns/MTR/sandfire-a4-step-out-drilling-update-anqzf1s8kferrsv.html
Highlights:
Maiden Probable Ore Reserve completed for the A4 Deposit, located 8km west of the Motheo Copper Mine in Botswana:
9.7Mt at 1.2% Cu and 18g/t Ag for 114kt of contained copper metal and 5.7Moz of contained silver.
85% of the contained copper in the updated A4 Mineral Resource announced on 21 July 2021 now classified as Ore Reserves.
Ore Reserve confirms A4 as a high-grade source of additional ore feed for the Motheo Copper Mine, underpinning an expanded long-life 5.2Mtpa Production Hub.
Sandfire will now move directly to a Definitive Feasibility Study (DFS) for the 5.2Mtpa Motheo Expansion, with the DFS expected to be completed in Q3 of FY2022.
Pre-Feasibility Study (PFS) completed to inform the A4 Ore Reserve has indicated outstanding project economics from an expanded 5.2Mtpa mining operation compared to the initial 3.2Mtpa base case development scenario (see ASX Announcement 1 December 2020):
116% increase in pre-tax NPV7% to US$672 million ($937 million) and IRR of 36%,
Mine life of 10.5 years, peak production of 60ktpa copper in concentrate, strip ratio of 6.5 waste to ore,
15% decrease in LOM all-in sustaining costs to US$1.56/lb.
Opportunities identified to further enhance the economic and technical outcomes of the A4 PFS through integrated mine scheduling and pit optimisation, with these enhancements to be incorporated into the DFS for the 5.2Mtpa Expansion Case.
Total pre-production development capital increased to US$366 million ($504 million), incorporating development costs for the A4 Open Pit plus an updated cost forecast for the Motheo plant to account for increased steel costs, foreign exchange movements and COVID-related disruptions.
Outstanding potential for further Resource and Reserve growth, with recent step-out drilling confirming high-grade mineralisation ~1.2km south-west of the A4 Mineral Resource envelope and drilling continuing across an exceptional target pipeline within Sandfire’s extensive land-holding in the Kalahari Copper Belt.
Michael McNeilly, Chief Executive Officer of Metal Tiger, commented:
"It is in the words of Mr. Simich a pivotal moment in Sandfire’s plans to establish a major new long-term mining hub at Motheo. In my opinion these sorts of robust numbers help provide a steady base from which to grow, both underpinning the investment case in Sandfire as well as underpinning a base case value of the 2% uncapped royalty where I believe A4 has significant room to expand but also that there will be additional discoveries to feed the hub that will be captured by MTR’s royalty. Exploration, especially resource drill outs in the KCB are not budget light affairs so the fact that Sandfire are committed to continuing significant drilling both in the near-mine area but also over the wider Kalahari Copperbelt is why I believe the Kalahari Copperbelt will emerge as a significant production hub in the medium term.
It is also worth noting that significant work has already progressed on area