Constructive Dialogue: Copper M&A the Cupboard is Nearly Bare, page-6

Recently, I came across an Aeon Metals Limited (ASX: AML) 25 November 2019 AGM presentation that included a reference on Slide 16 to Kalkaroo and a number of other ASX Listed company copper projects that I thought others on this forum might be interested in.

http://www.aeonmetals.com.au/wp-content/uploads/2019/11/2019-Nov-25-AGM-Presentation.pdf

Keys to the AML 25 November 2019 AGM presentation slide 16 (below): for each project’s column, read off on LHS scale [capital intensity (US$/tpa CuEq production)]; the green triangle on top of each project’s shaded column, read off on RHS scale [Mine Life (years)]; the number on top of each project’s shaded column represents initial CAPEX for each project [in US$ millions (A$/US$ assumed at 0.70)]:



Based on Slide 16, the Kalkaroo project has: the 4th lowest ‘capital intensity (US$/tpa CuEq production)'; and the equal 5th longest 'CuEq mine life'.

For those that are interested, I have sourced some additional information on the projects listed on the Slide 16:

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10
0	ASX Code	Market Cap $M (3/1/20)	Project	Country	Open Pit or Underground	Status	Minerals	JORC	Website	Notes
1	KGL	70	Jervois	Australia (NT)	OP & UG	EIS	Cu Ag (Pb)	Mineral Resource	https://www.kglresources.com.au/projects/2-jervois-base-metal/4-project-overview
2	SFR	1,068	DeGrussa	Australia (WA)	UG	Producing	Cu Au	Ore Reserve	https://www.sandfire.com.au/site/Business/sandfire-apac/degrussa-operations
3	SOL	5,192	Stockman	Australia (VIC)	UG	Feasibility Study	Cu Zn Ag	Ore Reserve	https://earthresources.vic.gov.au/community-and-land-use/key-site-updates/stockman-project
4	HAV	27	Kalkaroo	Australia (SA)	OP	Pre-feasibility Study	Cu Au (Co Mineral Resource)	Ore Reserve	https://www.havilah-resources.com.au/operations/kalkaroo/	90% of Ore Reserve is in the Proved category
5	AML	115	Walford Creek	Australia (QLD)	OP & UG	Scoping Study	Cu Co Ag Pb Zn	Mineral Resource	http://www.aeonmetals.com.au/wp-content/uploads/2019/11/2019-Nov-25-AGM-Presentation.pdf
6	OZL	3,449	West Musgrave	Australia (WA)	OP	Pre-feasibility Study	Cu Ni	Mineral Resource	https://www.ozminerals.com/operations/west-musgrave/
7	OZL	3,449	Pedra Branca	Brazil	UG	Feasibility Study	Cu Au	Ore Reserve	https://www.ozminerals.com/operations/pedra-branca/
8	MOD	See SFR	Rhino	Botswana	OP	Feasibility Study	Cu Ag	Ore Reserve	https://www.sandfire.com.au/site/Business/sandfire-emea/Tshukudu-Operations	MOD was taken over by SFR for $167M during 2019
9	XAM	25	Khamagtai	Mongolia	OP	Scoping Study	Cu Au	Mineral Resource	http://www.xanadumines.com/irm/content/kharmagtai.aspx?RID=368
10	C6C	162	Eva (Conclurry)	Australia (QLD)	OP	Feasibility Study	Cu Au	Ore Reserve	https://www.cumtn.com/operations/eva-copper-project/overview/	Altona (which held the Eva Copper Project) merged with CMMC for $93M during 2018
11	OZL	3,449	Carrapateena	Australia (SA)	UG	Ramp Up	Cu Au	Ore Reserve	https://www.ozminerals.com/operations/carrapateena-project/	Acquired during 2011 for $300M from Rudy Gomez (58%), his mates (8%) and Teck Australia (34%)
12	RXM	22	Hillside	Australia (SA)	OP	Extended Feasibility Study	Cu Au	Ore Reserve	https://www.rexminerals.com.au/projects
13	CVV	6	Caravel	Australia (WA)	OP	Feasibility Study	Cu Mo	Mineral Resource	https://caravelminerals.com.au/feasibility/
14	HCH	62	Productora	Brazil	OP	Pre-feasibility Study	Cu Au Mo	Ore Reserve	https://www.hotchili.net.au/projects/productora/
15	NCM	22,200	Wafi-Golpu	PNG	UG	Feasibility Study	Cu Au	Ore Reserve	https://www.wafigolpujv.com/project	50:50 JV between Newcrest and Harmony

In my opinion, there are not that many Australian undeveloped copper projects with JORC Ore Reserves. When copper eventually surges, due to the worldwide move to 'electrification of transport' and the 'decarbonisation of stationary power', the Kalkaroo project stands a good chance of M&A action.

Kalkaroo is of course Havilah’s flagship mineral project. Kalkaroo is the largest undeveloped open pit copper deposit in Australia on a CuEq ore reserve basis. The Kalkaroo project has a 0.74% CuEq grade based on US$2.89/lb copper and US$1,200/oz gold.


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.