RE: AS$320M funding secured based on PFS10 Nov 2022 14:17
To sow doubt is simple. All you do is pick one item (normally cost related) and spin a scenarios around that again and again and again whilst completely ignoring the whole picture.
This myopic attention on the funding is exactly that, nothing else.
In reality we have a 70% JV partner with their own problems. Telfer. Hav's processing plant in waiting. NCM can't close it down, to restart and try and re engage up to 1200 skilled staff you had to lay off is a big no. So they keep digging out more low grade ore to keep the doors open! The latest set of figures shows that NCM are currently running Telfer at an AISC in excess of the gold price - they are losing money on each and every ounce of gold that they dig out.
So NCM are in desperate need of high grade ore to feed Telfer. The only place that they can get that is from HAV. The decline is still progressing to that end along with the needed infrastructure roads etc.etc.
In reality, the delay to the FS makes total sense. If there is any way that they (NCM) cn bring forward the extraction of ore and get it Telfer, then they are going to find a way to do this. Expansion of the mine and extension of the Life of Mine are a given. If they can class Hav as a Tier 1 mine, this makes their funding decisions easier (internally within NCM, obviously).
The FS will be very interesting IMO, every day that they can bring forward production saves them (NCM) money. It makes little difference to us on our share of the funding. We have everything we need along with a buffer as described by SD. The push will be to get ore out and in quantity. New decline(s) / shafts and below ground expansions will be a future cost which will be covered from production (NCM need to start showing a ROI, not continuing costs - made loud and clear by their shareholders).
So, in reality, we may well end up in a position where we are over funded to earlier production as the 'time' costs to a FCF position is reduced.
All this focus on the AS$320m funding in isolation is really daft and unproductive. That is unless you are seeking to sew doubt etc.
Sit back and wait for the FS. Keep the champagne on ice ready for when it drops.
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