Copper closed at US$3.29/lb

Copper is about to crack US$3.30/lb level

Copper prices finished at US$3.29/lb (futures Dec'20) overnight, a two-year high on COVID-19 vaccine hopes.

At a FX rate of 0.7304, that is A$4.50/lb.

Remarkable, when you consider the published pre-tax _7.5% A$564 million Kalkaroo PFS (June 2019) used a 'consensus' price of US$2.89/lb at a FX rate of 0.75 or A$/3.86lb.

New copper mines will be needed as copper demand is forecast to outstrip copper supply in the medium to long-term. Havilah stated that its capital raising proceeds will ensure Havilah remains adequately capitalised through 2021 to carry out planned value-adding work programs, with the aim of commencing West Kalkaroo development activities during 2021.

It may also give Management some breathing room to attract project funding for Kalkaroo's development.

Havilah also stated Kalkaroo "investment partner or buyout might be possible in a favourable copper market." [Slide 3 of 19/11/2020 SPP presentation]



There are two primary types of copper deposits:

1. Porphyry Copper Deposits
   These copper ore deposits form from hydrothermal fluids coming from magma chambers below the copper deposit. These are currently the largest source of copper in the world.
2. Sediment-hosted Copper Deposits (e.g. Kalkaroo and Mutooroo)
   These are copper deposits that occur in sedimentary rocks that are bound by layers. They are formed by the cooling of copper-bearing hydrothermal fluids.

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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.