Ann: Activity Report Quarter Ended Dec 18 & Guidance Update, page-16

One could be despondent that we ended the quarter with $2,5 m in the bank instead of the $46m that the experts valuation indicated.

On a very broad brush analysis we produced 5.5 Kt of copper less than the valuation forecast. At current hedging that is worth $48.7 m.

We are told we are running at an expected recovery of 97% of the valuations projections for metal recovery (a loss of circa $11m). Hopefully they will come up with an underground option the delivers the 2 Kt shortfall lost to the wall failure plus the 1.4kt grade shortfall.

Re lump sum payment for the PHES verses a royalty stream, If Steve is reading the mood of the board correctly I think the negotiations might be about maximising the upfront payement.

If you read the dispatches in detail the initial exploration target for Nugent is 0.8 to 2 MT at a cu equivalent grade of 2.5% to 3.5%

Thats 20kt to 70 Kt  of equivalent cu. Which at current prices is $177m to $620M revenue.

You will notice in the crossections of the pit and proposals for UG mining that the  Nugent load extends way deeper than the proposed mine plan and drilling.
 
Now that  the Nugent lodes are still an option I think that the other near plant resources should be put on the back burner and all efforts  put into proving up the deep resources at Nugent. If it can produce a feed grade anywhere close to 2% copper and keep the plant running at full capacity it will be an unbelievable result.

Re capital raising:- 

I imagine prior to paying the dividend they will be building the case for a bright future and will  set up a DRIP for those who want to reinvest in  what looks like it could be promising future, particularly if its underpinned by a royalty stream stretching 100years + ..