Ann: Half-Year Technical Update Presentation, page-11

https://www.mining.com/web/blackrock-says-12000-copper-is-needed-to-incentivize-new-mines/

The above Mining.com article that discussed a US$12,000/tonne incentive price for copper was aimed at the large porphyry deposits (particularly in South America) where CAPEX is in the $billions but could also apply to CVV's Caravel copper project in Western Australia that is a porphyry deposit with a cut-off grade of 0.1% copper.

Kalkaroo's original 2019 PFS, which showed a pre-tax NPV_7.5 of $564 million, was run at US$2.89/lb copper, substantially under both the current spot copper price and long-term consensus copper price.

But I take your point that potential buyers of the Kalkaroo copper-gold may need a higher copper incentive price for their Boards to pull the trigger. I would be surprised if it is US$12,000/tonne (US$5.44/lb) though.

Extracts from Mining.com article
Copper needs to reach US$12,000/tonne (US$5.44/lb) to incentivise large-scale investments in new mines, said Olivia Markham, who co-manages the BlackRock World Mining Fund.

“When I look at the price today, I think it’s well below the pricing levels we need to incentivise new greenfield production,” Markham said in an interview Wednesday.


Note: Kalkaroo's 2018 JORC Ore Reserves had a cut-off grade of 0.4% CuEq for the main copper-gold resource. For the gold cap resource it was 0.2 g/t.

A mine plan is based on the “cut-off grade”, which is the minimum grade needed to make a unit of rock economic to extract at a given price. Any ore below this grade stays in the ground. When metal prices rise, the mining company makes more per tonne, so it is able to “lower the cut-off grade” and still make a profit. It’s essentially turning what was previously waste rock at old pricing into mineable ore at the new prices.

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.