Top 20 Gold Deposits in Australia, page-2

Research agency Standard & Poor’s (S&P's) Global Market Intelligence says major gold miners globally have seen their economically mineable gold reserves decline over the last decade, owing to a lack of new discoveries and a shift away from growth strategies to margin preservation.

The following article can be accessed through the Tweet below.

It says that 80 per cent of major gold miners have declining gold reserves. Some of the world’s largest gold producers may be forced to engage in targeted acquisitions or expand their exploration activities to overcome a decline in their gold reserves in the short-term.



Eighteen of the 20 profiled gold miners in the above article undertook some takeover activity in the past 10 years, buying 209 million gold ounces for US$51.3 billion at an average cost of US$245.50 an ounce.

Based on these metrics adding to reserves through acquisition is relatively more expensive than achieving the same through exploration.

Developing reserves through exploration cost the gold majors an average of US$96.75 per ounce.

Kalkaroo Project Metrics
Kalkaroo just on a gold-only reserve basis has 1,407,000 gold ounces.

1,407,000 gold ounces @ the above acquisition cost average of US$245.50 an ounce metric = US$345 million (~A$460 million) just for the gold-only reserves at Kalkaroo. This excludes the $ value associated with copper reserves for Kalkaroo.

1,407,000 gold ounces @ the above exploration cost average of US$96.75 an ounce metric = US$136 million (~A$182 million) just for the gold-only reserves at Kalkaroo. Excludes the $ value associated with copper reserves for Kalkaroo.

In my opinion, the Kalkaroo project on just a gold-only reserves basis remains undervalued within Havilah's share price based on many metrics, particularly when compared with its Australian gold peers.

It is possible that Kalkaroo could become one of the coveted undeveloped open pit deposits in the short-term (particularly given the Kalkaroo deposit is located in a geopolitically safe jurisdiction like Australia, that Havilah owns the land on which the Kalkaroo deposit is located and because of the quantum of gold reserves at Kalkaroo), at a time when many gold producers are trying to replenish declining mineable gold ore reserves.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.