Little tree shake here on the news. Market hasn’t quite fully...

Little tree shake here on the news. Market hasn’t quite fully digested the scale of this transaction.

Clearly there’s a substantial benefit of increasing the size of the open pit, allowing a 170m cut depth rather than 90m which substantially reduces costs in production. I suspect that HMX had not done adequate drilling at the border of the tenement due to its encroaching nature on CNB and relatively deep strike. For reference the Kalgoorlie Super Pit is 600m deep and 3.5km x 1.5km. This is the potential scale of this mine. To increase depth you have to substantially increase total surface area to allow for fluid mine operation. This is what we’re seeing here. CNB management continue to provide results and decisions increasing the size and life of this site, both which Cleary increase long term value.

Even if the HMX tenement isn’t substantially pre bearing, the ability to grow the footprint of the open cut will easily return 20m worth when sales are in the billions.

GLTAH, this is certainly a solid play from CNB. Probably could’ve negotiated a lower price given HMX market cap but it also indicates that the Aus Copper sector is still heavily undervalued, and such so is CNB.