Scenario (possible option)

In February 2024, Teck announces a major program (exceeding even the 2023 budget which was the largest ever in JV history) and commencement of a pfs report on Schaft Creek.

Opinion

While the above is amazing news for the project itself, it could spell disastrous for our wait time and exit from this investment.

The above situation could entice copper fox to stay with it to further "unlock SC value". Teck may not want to payout 1.2b to us now and might want to defer such funds into 2025 or later! Another Teck ploy to not pay us in the short term after a 13 year wait. 

Teck likely aware that if the 2024 program is too small or lacks big value add and project excitement, the copper Fox team and legal will send in the ROFO Letter. Basically...."not worth the wait"
This is all just a worst case waiting scenario.

Possible balanced outcome

Copper fox just waits until 2023 data is in, updates the resource estimate, mine plan, and pea report.....obtains fair value using today's currency rate, long term metal pricing, incorporates value-adds from 3-4 years of project enhancements-

1) construction timeline improvement 

2) Metal recovery rates improvement 

3) Geotech improvements for a better starter pit (lower costs/higher economics) 

While in conjunction to the above, copper fox gets Teck to announce Schaft Creek is a pfs staged asset and they obtain the 2024 program for information purposes (which could include permitting objectives) to allow other majors/future partners to see SC continuing to advance, adding more value to our 25% buyout!

Elmer also stated at the agm, few corporate options available including multi-asset sale or total company buyout.