IT TAKES a confident managing director to publicly set his company the task of being worth
nearly ten times what it’s valued at now within the next 3-5 years, but given the credibility
Bass Metals has built with its operational performance over the past few years, Mike
Rosenstreich’s ambitions can’t be dismissed as rhetoric.
Taking into account a $A3.55 million raising, Bass was this week valued at about $A55 million.
The Tasmanian-focused base and precious metals miner and explorer claims to have some
clear growth projects in hand, and to be exploring in a region with proven prospectivity.
Rosenstreich said the “great Tasmanian elephant hunt” was continuing, and given the world
class finds made over the past decades, such a discovery at some stage is undoubtedly
possible.
However, while any significant new discovery would rapidly propel the company towards its
market target, Rosenstreich’s confidence is underpinned by the projects in hand. First
production from its Hellyer project is imminent, and from early next year it will be banking
significant cash given zinc cash costs of US12c per pound payable zinc.
Rosenstreich said Bass would have a similar production profile to Terramin’s Angas project and
Jabiru’s Jaguar operation, and on the latter it is perhaps worth bearing in mind that Jabiru was
capped this week at more than $A320 million. (Though it should also be pointed out that
Jabiru’s cash cost of production last quarter was negative US59c/lb of zinc after credits – in
particular, from significant copper).
Given Hellyer’s 1.5 million tonne per annum capacity, the processing plant will operate on a
campaign basis, meaning Bass is keen to access additional feed sources to the planned
Fossey, Hellyer and Que River mines.
Possibilities include the mining and treatment of moderate to low-grade mineralisation around
the reserves, lead-zinc stockwork mineralisation (that also includes precious metals, and
which could possibly be beneficiated), and re-treatment of a significant tailings inventory. On
the latter, Rosenstreich is flying to China next month to meet with smelters potentially
interested in the tailings output, given only a few have the capacity to treat the potential
product.
Other sources of potential mill feed include near mine discoveries, with the Fossey East find
(next to the decline) a case in point.
“We are able to convert to cash any discovery of any scale,” Rosenstreich said.
The other significant potential addition to the Bass portfolio is a gold project, with the
company undertaking a feasibility on processing refractory gold resources from various
sources. In essence, the company could produce between 40,000oz and 110,000oz (gold
equivalent) depending on which processing route is taken, with operating costs and capital
costs varying.
A raising from European institutions this week for the feasibility work shows support for Bass’
work on this potential venture, which, notionally, could generate surplus cash flow of $55
million per annum, or, in the lesser output scenario, $A25 million.
Either way, it would be significant for a company this week valued at $A55 million.
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