I have been focussing on separating Havilah from the mining junior pack by articulating why Havilah has the best risk-reward equation.
(in Botswana).
A comparison of Havilah's 18 June 2019 Kalkaroo copper-gold project PFS (revised for the 2 December 2020 ASX Media Release new LT metal prices) with Sandfire Resources Limited's T3 Motheo copper-silver project DFS/FID (ASX announcement on 1 December 2020).
It should be pointed out that Sandfire used a more favourable discount rate and FX rate. It is also highly likely that Sandfire will only end up with 85% of the T3 Motheo project once the Botswana government backs into the project.
| Column 1 | Column 2 | Column 3 | | | Kalkaroo Copper-Gold Project (South Australia)
| T3 Motheo Copper-Silver Project (Botswana)
|
Company
| Havilah Resources Limited
| Sandfire Resources Limited
|
Ownership of project
| 100%
| 100% (subject to 15% back in by Botswana government)
|
Status
| PFS published 18 June 2019; Mining Leases granted; ownership of land on which project is located is via Kalkaroo pastoral lease; PEPR not yet granted
| DFS published 1 December 2020; FID approval; Environmental Impact Assessment approved; land not yet acquired for the project and infrastructure; Mining Licence not yet granted
|
Pre-tax NPV A$
| A$903 million
| A$451 million
|
IRR
| 26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)
| 25%
|
Discount rate
| 7.5% (2019 real)
| 7% (2020 real)
|
A$/US$ exchange rate
| 0.75
| 0.70
|
Copper price (long-term)
| US$3.10/lb
| US$3.16/lb
|
Gold price (long-term)
| US$1,500/oz
| -
|
Silver price (long-term)
| -
| US$17.92/oz
|
JORC Ore Reserve
| 474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification
| 360,000 copper tonnes; 15.6 million silver ounces. All in 'Probable' category
|
Copper cut-off grade
| Saprolite gold resources 0.2 g/t gold cut-off grade, while for the main Kalkaroo copper-gold resource a 0.4% CuEq cut-off grade
| 0.44% copper cut-off grade
|
Average production (as recovered metal) anticipated
| Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.
| Approximately 26,500 tonnes copper and 1.1 million ounces silver p.a.
|
Life of mine (processing)
| Minimum 13 years
| Initial 12.5 years
|
Waste: Ore ratio (including pre-strip)
| 3.5:1
| 6.0:1
|
Mine distance to nearest port
| ~350 km (road and /or rail) to Port Pirie, South Australia
| ~1,000 km by road to Walvis Bay, Namibia
|
(20min delay)