For clarity, I've dug up details of SFR's De Grussa for...

For clarity, I've dug up details of SFR's De Grussa for comparison with CCZ.

Castillo Copper (CCZ)

• 3.2MT resource for 3.35% grade or 107.6 kt of contained copper.

Sandfire Resources (SFR) De Grussa

• 9.5MT resource for 3.9% grade or 372 kt of contained copper.

So this puts CCZ's Cangai resource currently at 1/3rd of SFR's De Grussa.

First of all looking at CCZ's resource from the 8 January announcement ...

3.2MT resource for 3.35% grade or 107.6 kt of contained copper.



Whereas SFR's De Grussa resource has the characteristics highlighted from the announcement below ...

i.e. 9.5MT resource for 3.9% grade or 372 kt of contained copper.



Now SFR have a significant global asset pool of copper resources, equating to approximately 18 times the amount of contained copper. SFR 1944 kt / CCZ 107 kt = 18.16.



Now doing a simple MCAP comparison taking into account copper resource only ( simplistic I know ):

SFR

• $1.15 billion / 1,944 kt contained Cu = $591 k per kilotonne of contained copper ( to work out resource contribution to MCAP )

Extrapolating MCAP potential for CCZ ( note - simplistic since it is difficult to do a 1 for 1 comparison due to other metals in the respective resources and there will be differences in production economics )

• 107 kt contained Cu x $591 k = $63.2M
• CCZ current MCAP = $44M
• Assume 50% increase in resource size MCAP = $63.2M x 150% = $94.8M
• Assume 100% increase in resource size MCAP = $63.2M x 200% = $126.4M

In simplistic terms CCZ is undervalued on the basis of resource size ( although CCZ have a bit of work to get to producer status, but to be fair many of the SFR projects identified are in the exploration/development pipeline and not in production ).

Comments???? Let me know if you think the comparison (albeit basic) is reasonable.