Ann: Havilah-BHP Kalkaroo Work Program Update, page-51

It would be most interesting to see the OZL review of the PFS to see the assumptions therein "largely substantiated".

A reasonable comparison for the HAV PFS (2019) is the RXM DFS (2022).

RXM is on the coast near towns and infrastructure.
HAV is in BF nowhere and will need FIFO or DIDO facilities. Would FIFO ex-Adelaide or DIDO ex-Broken Hill attract the better workforce?

RXM have a 6Mtpa sulphide concentrator for hard ore.
HAV have a 7Mtpa sulphide concentrator for hard ore and a 4Mtpa oxide plant.

RXM have 82Mt @ 0.71% Cu eq.
HAV have 100Mt @ 0.68% Cu eq.

HAV may have a higher gold grade than currently in the reserve. However before one jumps to that conclusion:
- there is no comment in the update about gold grades in HAV diamond drilling vs OZL diamond drilling.
- how were the air core, RC and diamond drill hole datasets treated in the Kalkaroo resource estimation.
- did the air core and RC data sets show the same difference to the OZL diamond drilling.
- surely OZL re-estimated the resource as part of the review. What difference in gold grade did that turn up?

RXM capex is $704M excluding the mining fleet of $150M.
HAV capex is $454M excluding the mining fleet of $76M although in the PFS capex I cannot see where the 50+m deep pre-strip in Yr 00 is accounted for.

The RXM sulphide concentrator capex is $340M.
The HAV sulphide concentrator capex is $145M.

RXM has simple metallurgy.
HAV has complex metallurgy which will lead to complexities in grade control, mining and processing. A good corollary is Cudeco.

The HAV oxide plant will only be at capacity for 5 of the 10 years that oxide material is mined.

RXM has a strip ratio of about 7:1. Unit mining cost of $2.08 per tonne of rock.
HAV has a strip ratio of about 3:1 and soft stuff at the top. Unit mining cost of $1.93 per tonne of rock.

Based on the more recent RXM numbers and the extra HAV oxide plant and its remoteness...

HAV capex of >= $1B doesn't seem unreasonable.

Capex for Prominent Hill was over a billion in 2009 and that got OZL a 10Mtpa plant with contractor mining.

RXM managed a pre-tax NPV 5% of $1252M with some chunky metal prices.
HAV will have a pre-tax NPV 7.5% of $2200M according to @arsenic. Seems a bit of a pull of the other one given the above don't you think?

All is great when you escalate the metal prices but ignore the rest!

Me, I'd love to see the details of the OZL review. If they are largely confirmatory why not release them? Not that old "Commercial in Confidence" malarkey?

Who cares though? The copper price is to go through the roof and we'll be burning permapine posts for the CCA and mining the soil around our fruit trees for the residual copper sulphate.