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MCR 34.5¢

Reinvigorated exploration

  1. entropylord

    11,235 Posts.
    148
    Most folk hear who have read my posts will know that I have not been enthusiastic about MCR's margins or profitability from existing operations, observing that since the GFC MCR has mostly been paying dividends from preGFC cash and profits and that it has only been replacing perhaps half the nickel reserves mined since then.

    I am however noting the recent emphasis on exploration, and that this has been focussed largely where the grades are better, and appears possibly on the brink of multiple successes.

    Perhaps someone who has been following MCR closer could enlighten me as to whether there has been a change in exploration philosophy, technology, concepts or personnel behind what appears to be a change in exploration fortunes?

    For me to be interested in actually buying MCR again after many years I would need to see strong prospects of mining at substantially better margins, like those achieved by IGO at Long. In that respect I like the renewed effort in Nth Kambalda, eg Durkin. I am not going to buy anything on the basis of an improved PON, I need to see healthy free cashflow at the current pon, ie several $/lb lower AISC, and for that the current exploration programs need to come to fruition and deliver better ore bodies than MCR has mostly been mining.

    Interested in any insights or informed comments. Also happy to be disputed in the above if it corrects any misunderstandings I have.

    EL

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