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VH,Mincor finally looking like it’s time might have arrived...

  1. 13,919 Posts.
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    VH,
    Mincor finally looking like it’s time might have arrived again. I am back aboard after a decade away, been nibbling the last couple of weeks, spurred by the Long deal, but feel like my boat has left port 60% full. Not inclined to chase the price up, will look to nibble on dips, as whilst I believe in the EV story I expect quite a few false dawns. I don’t believe Long is anywhere near done, just the new team at IGO couldn’t be bothered with it anymore. Good to see it in MCRs portfolio as besides the synergy it was such as high margin performer. Another Moran there or between the mines would be a great bonus. [disclosure: I was a very long time IGO holder].

    I am considering buying an EV (a Leaf) but the more I look at it the more I see I mostly couldn’t use it on road trips, and couldn’t even rely on it for a decent day excursion from the city. For a city car (which half the worlds cars are) it would be fine, but the batteries are still a work in progress. I need more convincing as to battery longevity as it seems they don’t really like fast chargers, then of course outside the cities the infrastructure is scattered. And of course the price premium over the equivalent. It’s a good story, almost inevitable imho, but very early days imo.

    Anyways back to Mincor, with Long added and the potential for new discoveries looking much more promising the story is looking a lot more interesting (for the same pon) than it did at the time of shuttering. I am considering it a new management yet to prove themselves to us, but they do look to me of the right pedigree. Hopefully can keep their AISCs down this time round, as my gripe with their last era is development costs for reserve replacement ate all their margin too many years, and some of the mines had high cash costs.

    Imho at USD7/lb Mincor would likely need to be a bunch of clowns not to be able to get Long humming again and minting cash to self fund Cassini. IGO always made a heap of free cash flow out of it, until the last pon lows, even when everyone else was bleeding. It was the last of the old WMC mines to close I think? Let’s hope they can get some of the best of the old Long team back. By all accounts they operated much better and safer than WMC did. Any deal with the current IGO team as counterparty likely to be very sweets imo.

    Apologies if a bit of a ramble.

    EL
 
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