Australia's largest stock trading and investment forum Australia's #1 stock forum

NWC new world resources limited

0.86%

5.8¢

Ann: Highly Successful Reserve Upgrade Drilling Program Completed, page-40

First 40 Last

plough

35,518 Posts.

2281

09/12/24

08:44

Post #: 76965258

Originally posted by Lacan ↑

IMO. DYOR. If anything is missing or wrong, let me know.
1. Resource and Reserve Assessment

Category
Details
Comparison to Industry Standards
Commentary

1 Grade of Resource
- Cu: 2.1%, Zn: 5.0%, Pb: 0.9%, Ag: 32.9 g/t, Au: 0.36 g/t.
- Cu-equivalent: 4.1%, ranking among the highest globally.
- The high Cu-equivalent grade significantly enhances project economics, providing a cushion against price fluctuations.

2 - Recent drilling: 18.6m @ 5.9% Cu-Equiv., exceeding Resource model expectations.
- High-grade zones significantly enhance economic viability.
- Exceptional intercepts reinforce the geological model’s robustness and validate further exploration plans.

3 Resource Size
- Total: 11.4 Mt (Measured: Upgrade pending Q1 2025).
- Comparable projects typically classify ~50% as "Measured."
- Resource classification upgrade to "Measured" will reduce uncertainty and attract more investors.

4 - Indicated: 9.06 Mt (4.3% Cu-Equiv.), Inferred: 2.37 Mt (3.3% Cu-Equiv.).
- The significant portion in the Indicated category demonstrates high confidence in the near-term resource.

5 Reserves
- Reserve definition program supports 3–5 years of high-confidence operations initially.
- Industry standards aim for >5 years Proven reserves initially.
- Future exploration targeting resource expansion can extend mine life, increasing long-term project stability.

6 - Ore Reserves upgrades expected to "Measured" category.
- The focus on early reserve development reduces production risk during the initial years of operation.

7 Limitations
- Heavy reliance on inferred zones for longer-term planning.
- Industry aims to minimize inferred reliance in early years.
- Targeted drilling to convert inferred resources into higher-confidence categories should remain a priority.

2. Feasibility and Costs

Category
Details
Comparison to Industry Standards
Commentary

1 Feasibility Study
- PFS completed (July 2024); DFS underway with metallurgical test work ongoing.
- Consistent with development timelines for high-grade projects.
- Early PFS outcomes indicate the project has strong economic potential, providing a solid base for DFS refinement.

2 - Early findings indicate robust economics for high-grade production.
- Accelerating DFS workstreams, including mine design and permitting, is crucial for meeting the 2027 production target.

3 CapEx
- Estimated cost of plant, tailings, and infrastructure not disclosed.
- Typical CapEx: $150M–$500M for high-grade underground copper projects.
- CapEx estimates will need transparency in the DFS stage to build market confidence and assess funding requirements.

4 OpEx
- Operating metrics (e.g., AISC, C1 costs) not disclosed but expected to be low given Cu-Equivalent grade.
- Benchmark: AISC for Cu $2.5/lb.
- The high Cu-equivalent grade suggests a competitive cost structure, making the project resilient to commodity downturns.

5 Breakeven Price
- Cu: $9,259/t, Zn: $2,712/t, Pb: $2,205/t, Ag: $25/oz, Au: $2,055/oz.
- Break-even likely competitive; industry average Cu: $7,500/t.
- Break-even prices highlight strong project economics, with substantial room for profitability in the current market.

6 Limitations
- Lack of detailed OpEx and CapEx figures in public disclosures.
- Requires transparency to ensure investor confidence.
- Additional cost sensitivity analyses will be critical for demonstrating economic robustness to stakeholders.

3. Revenue and Profitability

Category
Details
Comparison to Industry Standards
Commentary

1 NPV/IRR
- Not yet calculated (pending DFS).
- High-grade projects typically target IRR >20%.
- IRR and NPV should show favourable returns due to the high-grade resource, provided CapEx and OpEx remain competitive.

2 Assumptions
- Price benchmarks: Cu, Zn, Pb, Ag, Au (as above).
- Price sensitivity aligned with global averages.
- Conservative price assumptions will help mitigate risks from market volatility.

3 - Inflation and exchange rates not disclosed.
- A comprehensive sensitivity analysis on economic assumptions will strengthen the financial outlook.

4 Hedging Strategies
- Not mentioned.
- Industry practice includes price hedging to reduce volatility.
- Future planning could consider hedging or offtake agreements to manage commodity price risks.

5 Limitations
- Financial metrics pending DFS limits clarity on economic robustness.
- Early-stage metrics should be clearly outlined.
- Revenue projections and profit estimates must be detailed in the next phase to ensure feasibility confidence.

4. Timeline and Milestones

Category
Details
Comparison to Industry Standards
Commentary

1 Key Milestones
- Reserve drilling completed; Resource upgrade expected Q1 2025.
- Aligned with standard 2–3-year feasibility and permitting cycles.
- Maintaining momentum in permitting and DFS is crucial to meet the targeted 2027 production date.

2 - Construction start: 2026; production start: 2027.
- Median construction time for copper projects: 2.5–3 years.
- Effective resource allocation for permitting and construction phases will minimize risks of delays.

3 Limitations
- Permit delays and regulatory changes remain potential risks.
- Similar risks across jurisdictions.
- Proactive engagement with regulatory bodies and stakeholders will mitigate the risk of unexpected delays.

5. Geological and Technical Risks

Category
Details
Comparison to Industry Standards
Commentary

1 Geological Models
- Advanced modelling exceeding expectations in all major drilling zones.
- Strong confidence in geological interpretations.
- Validation of the model ensures reliable planning for resource conversion and future mining operations.

2 Mining Methods
- Underground mining with significant high-grade potential.
- Industry-preferred method for high-grade deposits.
- The selected mining method aligns with deposit geometry and grade, optimizing economic returns.

3 Recovery Rates
- Cu: 94.4%, Zn: 94.7%, Pb: 79.9%, Ag: 77%, Au: 82%.
- Above-average metallurgical recoveries.
- High recovery rates reduce material loss, enhancing revenue potential from extracted ore.

6. Infrastructure and Logistics

Category
Details
Comparison to Industry Standards
Commentary

1 Proximity
- Located near Kingman, AZ, with robust local infrastructure, including roads and power access.
- Favourable logistics compared to remote mining regions.
- Local infrastructure reduces the need for costly capital investments, improving project economics.

2 Development
- On-site processing plant, pastefill plant, and dry-stack tailings facility planned.
- Consistent with industry standards for minimizing environmental impact.
- Planned infrastructure supports long-term operational efficiency and sustainability.

3 Limitations
- Remote terrain and specific infrastructure needs may raise initial costs.
- Challenges are common for new projects but manageable.
- Clear funding for infrastructure and contingency planning is critical to avoid construction delays.

7. Environmental, Social, and Governance (ESG) Factors

Category
Details
Comparison to Industry Standards
Commentary

1 Permitting
- Positive local and federal government engagement; initial mine permit submitted January 2024.
- Consistent with early-stage permitting schedules.
- Proactive engagement with stakeholders, including local governments, will mitigate potential risks.

2 Community Relations
- Engagement supported by visits from federal representatives (e.g., Congressman Paul Gosar).
- Industry emphasizes community agreements to minimize resistance.
- Local partnerships and community benefits should be formalized to ensure ongoing support.

3 Environmental Impact
- Tailings facility and mitigation measures designed to minimize environmental footprint.
- Industry practices increasingly focus on sustainability.
- Dry-stack tailings align with modern approaches for reducing water use and land disturbance.

8. Management and Team

Category
Details
Comparison to Industry Standards
Commentary

1 Experience
- Experienced team with a track record of successfully delivering mining projects.
- Comparable to other projects with seasoned leadership.
- Management’s expertise will be pivotal in navigating permitting, financing, and construction phases.

2 Track Record
- Successfully completed prior milestones, including reserve drilling and early permitting.
- Consistent with industry standards for effective project management.
- Continued transparent communication with stakeholders will further bolster investor confidence.

3 Limitations
- No apparent gaps in expertise identified at this stage.
- Industry trends show multidisciplinary teams as a strength.
- Ensuring a mix of technical, financial, and operational experts is crucial for long-term success.

9. Financing and Ownership

Category
Details
Comparison to Industry Standards
Commentary

1 Funding Status
- No explicit funding for development yet disclosed; likely to involve equity or debt financing.
- Early projects typically secure funding post-DFS.
- Demonstrating robust DFS outcomes will be key to securing favourable funding terms.

2 Ownership
- 100% owned with a manageable 3% NSR royalty.
- Favourable ownership structure compared to joint ventures.
- Retaining full ownership provides flexibility for future expansions or partnerships.

3 Capital Structure
- Capital structure details are not provided in the document.
- Transparency is critical for investor evaluation.
- Clear communication on financial strategy will mitigate risks of dilution or unfavourable debt terms.

10. Market and Economic Context

Category
Details
Comparison to Industry Standards
Commentary

1 Commodity Prices
- Cu: $9,259/t; Zn: $2,712/t; Pb: $2,205/t; Ag: $25/oz; Au: $2,055/oz.
- Benchmarks align with global market prices.
- Sensitivity to commodity price fluctuations should be analysed further in the DFS.

2 Demand Forecast
- Strong demand anticipated for copper due to global electrification and renewable energy trends.
- Copper demand remains robust with no immediate risks of oversupply.
- The project is well-positioned to capitalize on long-term demand for green energy materials.

3 Geopolitical Risks
- Stable jurisdiction in Arizona, USA, with mining-friendly policies.
- Arizona ranks as a top-tier jurisdiction globally for mining.
- While low, risks such as regulatory changes or local opposition should still be monitored.

11. Competitive Position

Category
Details
Comparison to Industry Standards
Commentary

1 Benchmarking
- Among the highest-grade copper deposits globally (4.1% Cu-Equivalent).
- High-grade projects often achieve superior economics.
- The project’s grade advantage positions it as a strong competitor in the copper mining sector.

2 Competitive Strategy
- Focus on regional exploration and resource expansion to sustain competitive edge.
- Industry leaders prioritize resource growth for long-term viability.
- Exploring satellite deposits could enhance the project's production profile and mine-life.

3 Limitations
- Competitiveness depends on successful exploration and maintaining cost advantages.
- Long-term sustainability often hinges on exploration success.
- Demonstrating exploration success will further solidify the project's position in the market.

12. Exit Strategy

Category
Details
Comparison to Industry Standards
Commentary

1 Monetization
- Focused on production with potential for regional exploration upside.
- Common approach for high-grade, high-potential projects.
- Clear articulation of potential dividends, share buybacks, or partnerships will attract investors.

2 Long-Term Vision
- Exploration targeting regional growth; potential for satellite deposits to enhance production.
- Industry trends emphasize scalability and flexibility in exit strategies.
- A strategic roadmap for expansion or divestiture should be integrated into the DFS.

3 Limitations
- Delays in permitting or financing could impact execution.
- Risks are typical in the mining sector but must be actively managed.
- Clear contingency planning for delays will mitigate risks to the timeline and investor returns.

Overall = 9/10

Key Strengths

World-Class Resource: Among the highest Cu-equivalent grades globally, ensuring robust margins and profitability.

Strong Economics: High NPV, IRR, and cash flow make this project highly attractive for investors.

Regulatory Compliance: Exemplary adherence to BADCT standards and proactive permitting.

Exploration Upside: Potential for significant resource expansion ensures longevity.

Key Areas for Improvement

Cost Transparency: Detailed breakdown of CapEx and OpEx required in the DFS.

Funding Strategy: Clear communication on post-DFS financing plans is critical.

Mitigation for Delays: Proactively address risks in permitting and construction timelines.

Actionable Steps to increase investment attraction

Increase Transparency:

Publish detailed CapEx and OpEx figures, cost sensitivity analyses, and financing plans in the DFS.

Provide clear contingency measures for potential permitting or construction delays.

Demonstrate Execution Capability:

Ensure that project milestones are met on schedule (e.g., permitting approvals, DFS completion, and construction start).

Prove Exploration Upside:

Accelerate drilling programs to convert inferred resources into higher-confidence categories (Indicated/Measured) and explore satellite deposits.

Secure Financing:

Establish clear funding commitments for post-DFS stages to mitigate uncertainty

Expand

What do you mean for break even prices in Table 10 , also your gold price seems a lot lower than current spot , are you looking at gold coming down in price in the future but the other base metals staying around current spot ?

No mention of dealing with First nation people in Arizona

With dry stack tailings are there any environmental issues with that and if so how are they mitigated , also how does that all fit in with eventual mine closure and do environmental bonds with authorities need to be considered as part of CAPEX ?

NWC Price at posting: 1.8¢ Sentiment: None Disclosure: Not Held

0 Great analysis

Top Stories

Listen: HotCopper Wire Podcast 014 – Abu Dhabi wants to buy our 'true' oil and gas gem

GRE

Juicy copper-zinc target brings GreenTech closer to near-term Whundo production

XRO

'Step-change' for Xero internationally with $3.9B deal to buy US bill pay platform

TKM

Trek Metals brings in another drill rig to dive deeper at Christmas Creek

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

First 40 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 5.8¢		Change -0.001(0.86%)		Mkt cap ! $203.6M

Open	High	Low	Value	Volume
5.8¢	5.8¢	5.7¢	$214.7K	3.718M

Buyers (Bids)

No.	Vol.	Price($)
10	26034657	5.7¢

Sellers (Offers)

Price($)	Vol.	No.
5.8¢	2991885	6

View Market Depth

No.	Vol.	Price($)
10	26034657	0.057
8	7590489	0.056
2	87093	0.055
3	1474300	0.054
1	40000	0.025

Price($)	Vol.	No.
0.058	2991885	6
0.059	1999394	6
0.060	4785195	19
0.061	2194500	2
0.062	720000	4

Last trade - 13.06pm 25/06/2025 (20 minute delay)

NWC (ASX) Chart