Mining companies don’t need growth. Replacing mine depletion is all most can manage at best.
Whilst it is true that at least initially C won’t give OZL production growth after allowing for production drop with the exhaustion of the open pit at PH, C has a 20 year mine life (something PH never had) and with PH UG extended out to 2029 it has a longer life expectancy than it ever has. Growth in mine life can be as valuable as growth in production.
What AC has done at OZL is firstly to get the operation disciplined and cost effective, secondly to put in place a long life of circa 100,000 tpa copper production for the company. Thirdly he can now focus on production growth.
With the latter don’t forget C is expandable (with a substantial uncommitted resource), and don’t forget WM looks very promising. I am not so sure AVB will add growth so much as provide more growth options. Might mean delaying expanding C or might mean deferring WM?
OZL might just as well be looking for the next C as for the next PH imo.
EL
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