Transport will be the big cost for moving the product from the CSE facility to the KZL facility.
Is it a 400km round trip? If so, then I agree that only the high grade ore would be moved.
I suspect that KZL are only paying for the high grade ore and not the low grade ore in the offer to CSE. So, yes, it is marginal business for KZL, but strategic in locking in more resources; and yes, they will need to be careful and not overpay. There is no shame in walking away and coming back again later.
HT1
KZL Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
