CST - Castile Resources

[Daytr]

Hi Daytr,I havnt kept up with CST,you're still have conviction on eventual development etc?

From what I have read I'm expecting the project to be banked within the next six months give or take. I wouldn't be surprised if it was as early as March.

I don't think they would employ an ED for $250K a year who's a minining engineer for nothing.
And again, I'm also going on my time working with Peter Cook. He does not waste company funds or as he would term it shareholders funds.

[JBmurc]

From what I have read I'm expecting the project to be banked within the next six months give or take. I wouldn't be surprised if it was as early as March.

I don't think they would employ an ED for $250K a year who's a minining engineer for nothing.
And again, I'm also going on my time working with Peter Cook. He does not waste company funds or as he would term it shareholders funds.

Yes securing the funds for the planned A$280mill CAPEX will be key to CST future at 19mill Marketcap can be harder to secure that much funds along with staff in Aus .

..I know of many projects with DFS in place like KSN with their "Misima Gold Silver Project 3.8MOz Au 22Moz Ag" worth pretty much nothing going off KSN $38mill market cap when you value of the Mineral Hill 700koz plant present and forward production profile ..800koz Aueq resource and growing..

At present Gold $2koz Misima has LOM NPV $1.3Bill - $400Mill CAPEX and KSN knows it too big a project for them to try and raise the funds and bring into production ..so are after a JVP etc

[Daytr]

Yes securing the funds for the planned A$280mill CAPEX will be key to CST future at 19mill Marketcap can be harder to secure that much funds along with staff in Aus .

..I know of many projects with DFS in place like KSN with their "Misima Gold Silver Project 3.8MOz Au 22Moz Ag" worth pretty much nothing going off KSN $38mill market cap when you value of the Mineral Hill 700koz plant present and forward production profile ..800koz Aueq resource and growing..

At present Gold $2koz Misima has LOM NPV $1.3Bill - $400Mill CAPEX and KSN knows it too big a project for them to try and raise the funds and bring into production ..so are after a JVP etc

Well Misima is also in PNG so its a lot harder to bank than an Aussie project.

Peter Cook has a long standing relationship with Macquarie. I would be surprised if they struggled to get the money, it may well mean a capital raise, however knowing Cooky he will avoid that as much as possible and typically prefers debt.

But who knows, debt appetites change. Although Macquarie make a hell of a lot out of these deals as they typically involve quite a large hedge to cover the debt.

If they are forced to hedge I would prefer they buy puts or did a collar at least to retain some upside to the gold price.

[JBmurc]

Well Misima is also in PNG so its a lot harder to bank than an Aussie project.

Peter Cook has a long standing relationship with Macquarie. I would be surprised if they struggled to get the money, it may well mean a capital raise, however knowing Cooky he will avoid that as much as possible and typically prefers debt.

But who knows, debt appetites change. Although Macquarie make a hell of a lot out of these deals as they typically involve quite a large hedge to cover the debt.

If they are forced to hedge I would prefer they buy puts or did a collar at least to retain some upside to the gold price.

I think the plan is for KSN to secure a JVP in the PNG Gold space you have many Gold mining in the area the likes of >Newcrest ,Harmony ,SBM ,Barrick ,Pan Aus etc ...some 4kms of Strike could well double the 3.8MOz Gold resource .. use to be a mine many years ago so much lower CAPEX than if it was a new project development .. will be 6.1Mtpa plant .. I've see CAPEX values why more than double the DFS for that size CIL plant... I think its only a matter of time till someone comes forward and secures the project giving KSN a free carry royalty

[Daytr]

I think the plan is for KSN to secure a JVP in the PNG Gold space you have many Gold mining in the area the likes of >Newcrest ,Harmony ,SBM ,Barrick ,Pan Aus etc ...some 4kms of Strike could well double the 3.8MOz Gold resource .. use to be a mine many years ago so much lower CAPEX than if it was a new project development .. will be 6.1Mtpa plant .. I've see CAPEX values why more than double the DFS for that size CIL plant... I think its only a matter of time till someone comes forward and secures the project giving KSN a free carry royalty

I did some hedging for Misima back in the day.
Yep I agree with you, it's a target for one of the other established players.
Misima is very low grade though.

[JBmurc]

I did some hedging for Misima back in the day.
Yep I agree with you, it's a target for one of the other established players.
Misima is very low grade though.

Yet AISC come in pretty sharp A$1217oz...even at A$1300oz than's $1728oz EBIT per oz .. planned 120-130koz pa ...LOM 2.3MOz Au

low grade but advantageous metallurgy helps... at present AUD:USD + Gold price I get NPV $1.5- 1.6Bill ..

I'm sure a decent Cash payment $A20-30mill upfront + royalty , target payments would secure it ... and make it a cheap add on 20yr LOM 120koz

Maybe Zijin group could interested ... higher gold goes the higher the chance someone will come forward ..

[Daytr]

Nice quarterly from CST.
Backs my view of working towards development & production.
Share price has had a nice rally in recent weeks as well.
https://www.castile.com.au/investors/asx-announcements/

[Daytr]

Castile recieves substantial support from the NT Government. This should smooth the way towards development. Albo has been dishing out loans to mining companies of late, I wonder if this might qualify,

https://www.castile.com.au/investors/asx-announcements/