reported by oilbaron87 @ SH.....
I spoke with the CEO Merlin Bingham yesterday for about 30 minutes or so. I found him to be a straight shooter, not a pumper or hypster, which I appreciated. Bottom line is he said the feasibility study is taking alot long than thought due to several changing factors. Lack of supply of geologists, engineers, field workers... you name it. The entire industry has a worker shortage problem, let alone equipment, assay testing, etc. Also, they along the way discovered that they may be able to operate an open pit mine. This changes the dynamics of a feasibility study alot. So, they have to do quite a few air fly-overs and mapping and more work. In addition, they are developing the mine plan, and then working on the water issues... which look good so far he says.
They also plan to take the concentrate and probably ship it to be processed to a location where electricity and taxes are lower, amongst other benefits. He has it narrowed down to a few locations.
So the next thing we should hear hopefully is the mine plan updates, and then water, and on and on. He said even if a feasibility study was completed, its still 4-5 years from production... but of course they can book the reserves, at which point the game changes for valuation.
Until then, he continues to plod along. He believes that Zinc will remain in a major shortage imbalance for some time. Says it takes 10 years from discovery to production at best, there simply is not enough production coming online in the time frames people think.
HE is unabashedly bullish on base metals as well, copper, zinc, Nickel... agrees with me the bull market in commods is not over, just a correction.
I have not bought shares yet, preferring to wait. Starting in late feb there will be alot of shares unlocked and he did indicate they are talking with several institutions that can help soak up the supply... if anything, shares may transfer into stronger hands.
I guess Im hoping for a pullback to buy... like we all do... but then often we get nervous and dont buy the pullback... so we will see.
The valuation obviously is low... for now. |
