RE: copper 2.5 - 2.69 Mar 2020 11:09
This email is in reply to Dave Roberts who wrote a negative post ... I hope he follows up
Dave Roberts you said ATYM breaks even at copper 2.8 : how do you work that out? What facts are you using?. If we only broke even at 2.8 how has ATYM been able to finance expansion without further cash injections when copper prices have been lower than 2.8 on average during last 2 years? ATYM balance sheet from 2.5 years ago shows ATM had a negative working capital, but this has now been paid off and is now positive territory.
DaveR you say AYTM is loss making with copper at 2.5 . ATYM all in costs are currently 2.15 . You need to understand that this includes (capex , exploration, G&A , interests). Depreciation is a non cash item. Depreciation = less profits, less taxes.
Touro is not a rubbish project, but would not be developed with copper at 2.5 . Then you need to ask how can copper stay LT 2.5 . Where is it going to come from ? No new projects can de financed at 2.5 . ATYM does not have any other external costs. No further expansion plans at Rio Tinto . On Touro, its an option, it does not really cost us anything to explore the feasibility.
DaveRob questions how dividends could be paid. Well I say it is possible, but more likely ATYM to invest for growth (we have a top management team). DaveR you question where one for dividends (and I guess anything else like investment) will come from? Well with costs at 2.15 , copper at 2.6 for next 13 years (unlikely to be so low) ... we make so much money : 700 000 tons copper = 1.5bn pounds roughly (1 = 2000 bunds) copper, lets say 0.4 USD margin = $600m profit . We are either going to expand or we will give back to shareholders. NB any investment would probably combine smart use of debt and maybe equity (we need a bigger float for when we come of AIM into main board).
DaveR goes on about AAU : The AAU has an administrative issue and the court ruling was against the Junta to fix it. Not against ATYM who has been operating normally for over a year.
DaveR also goes on about a "sludge plant" where and why are you saying this? Are there examples anywhere of an open pit copper mine with a sludge plant? PLEASE GIVE AN EXAMPLE. There is no reason to build a sludge plant. Where are you getting the sludge plant story from, is it just you or something else? We don't need a sludge plant.
DaveR mentions better projects out there that he is invested in. Please could you tell us what miners they are? Are they working and fully financed ? If they are just projects still waiting for construction and production you cannot compare to ATYM. How are your mines going to be financed ? PLEASE NAME YOUR BETTER MINES.
DaveRoberts mentions 120p price ... well if it gets there, the stock will be trading at less the investment made over the last 4 years ... that's al the concrete , machinery , steel and equipment installed. This would be pricing our copper resource at 0 .
BUY rec
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