The main short term issues remain the placement numbers. How much and what price.
The BFS looks good for the first 4 years with rising costs in the second 4.
The deeper the go, the higher the costs. As I see it, they basically need more near surface ore to blend with the second 4 years mine life to keep their costs down. This would have been better for them if they had hit an underground deposit to justify more tons, grade and lower costs.
The area has lots of exploration potential, so I think EAR will find something in due course. The first 4 years makes a lot of economic sense to move into production anyway.
Meanwhile, the plant is valuable to NST given its growth ambitions. The gold price has not pushed any urgency buttons and NST already own a blocking stake. Production will come next year and the gold price is moving about. Things will settle down when they raise and they get close to turning the plant on. Market sees no hurry unless they get drilling again and find something exciting to add to the mix. This explains the weakness in the short term imo. Just my thoughts. Dyor
EAR Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
