'... the [Kalkaroo] project “can potentially sustain a substantial bulk open pit mining operation at an average annual production rate of 34,000 tonnes of copper and 108,000 ounces of gold over a period of at least 14 years’’.'
Using the above production assumptions as well as the following:
Cu price USD 7,100/t
Au price USD 1,300/oz
FX 0.785
Capex A$350m (spent in 2019)
Profit margin 30% (in lieu of opex data)
Discount rate (pre-tax) 10%
Mine production from 2020
Result: Kalkaroo NPV A$658m
Or > 14x HAV's current Mkt Cap!
Note that the above production rates over 14 years produce 476kt of Cu and 1.512m oz of Au. This compares with Kalkaroo resource of 1,139kt of Cu, 3.285m oz of Au and 2.768m kg of Mo.
The above NPV calculation does not go out further than 14 years' production. Any increases in the average annual production would have a positive impact.
As a comparison, the above NPV result falls within the range of the ISV (in situ value) calculation performed last year (Post #: 27054792)
Once the Final PFS is made public, we'll have a definitive NPV for Kalkaroo.
(20min delay)
