Copper Peer Comparisons (Undeveloped Projects, Ore Reserves, PFS or FS), page-24

Kalkaroo Project Peer Comparison (Undeveloped Australian Projects, Ore Reserves, PFS or FS)

Continuing my undeveloped Australian copper peer comparison for ASX listed companies, I have used Havilah's flagship Kalkaroo project alongside Copper Mountain Mining Corporation’s (ASX: C6C) Eva copper-gold project.

The table below shows a copper peer comparison of Havilah's 18 June 2019 Kalkaroo copper-gold project PFS (revised for the Havilah 2 December 2020 ASX Media Release new LT metal prices) with the Eva copper-gold project FS Update (C6C ASX announcement of 7 May 2020).

Compared with the Eva feasibility study completed during 2018, the new C6C study has increased the mine life by three years to 15 years, boosted annual production by 25% to 100 million lb. copper, and decreased cash costs by 17% to US$1.44 per lb. copper after by-product credits.

Since the original feasibility study, the Eva project has added the Blackard and Scanlan deposits into its reserve count, increasing total ore reserves by 46%.

With an initial CAPEX of US$443 million (up from US$350 million in the 2018 study), the open pit Eva project is forecast to produce an after-tax net present value of US$437 million (up from US$256 million) and an internal rate of return of 29%, using a discount rate of 8%.

Copper price US$3.04/lb (down from US$3.08/lb).
Gold price US$1,362/oz (up from US$1,310/oz).
A$:US$0.6452 (from A$:US$0.7575).


Notes:
Apart from Eva, Copper Mountain Mining Corp also has the 75% owned producing Copper Mountain copper-gold-silver mine in Canada, where it is based.

The current C6C market capitalisation is ~$600 million.

	Column 1	Column 2	Column 3
0		Kalkaroo Copper-Gold Project (South Australia)​	Eva Copper-Gold (Queensland)​
1	Company​	Havilah Resources Limited (ASX: HAV)​	Copper Mountain Mining Corp (ASX: C6C; TSX: CMMC)​
2	Ownership of project​	100%​	100%​
3	Status​	PFS published 18 June 2019; Mining Leases granted May 2019; ownership of land on which project is located is via Kalkaroo pastoral lease; Native Title Mining Agreement in place; PEPR not yet submitted for approval​	5 granted Mining Leases (ML), except for the Ivy Ann pit. Necessary agreements are secured with the pastoral leaseholders and Native Title party.​ The Queensland Government introduced rehabilitation and Financial Assurance reforms subsequent to grant of the current EA and previous Feasibility Study. Yet to be completed ​
4	Pre-tax NPV​	$903 million​	US$648 million​
5	Discount rate​	7.5% (2019 real)​	8% (2020 real)​
6	A$/US$ exchange rate​	0.75​	0.6452​
7	Copper price (long-term)​	US$3.10/lb​	US$3.04/lb​
8	Gold price (long-term)​	US$1,500/oz​	US$1,362/oz​
9	IRR (pre-tax)​	26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	37%​
10	IRR (post-tax)​	21% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	29%​
11	JORC Ore Reserve​	474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification​	780,000 copper tonnes; 260,000 gold ounces. 57% in ‘Proved’; 43% in 'Probable' ​
12	Mining method​	Open pit​	7 open pits deposits. The seven deposits in order of size are Little Eva, Blackard, Scanlan, Turkey Creek, Lady Clayre, Bedford, and Ivy Ann ​
13	Copper cut-off grade​	Saprolite gold resources 0.2 g/t gold cut-off grade, while for the main Kalkaroo copper-gold resource a 0.4% CuEq cut-off grade​	Mineral Reserves are reported at an NSR cut-off value of US$8.95/t for Little Eva and Turkey Creek, US$9.35/t for Bedford and Blackard, US$10.32/t for Lady Clayre and Scanlan, and US$11.44/t for Ivy Ann​
14	Average production (as recovered metal) anticipated​	Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.​	Approximately 45,000 tonnes copper and 14,000 ounces gold p.a. ​
15	Life of mine (processing)​	Minimum 13 years​	15 years​
16	Waste: Ore ratio ​	3.5:1​	2.2:1​
17	Mine distance to nearest port​	~350 km (road and/or rail) to Port Pirie, South Australia​ ​ 95 km northwest of Broken Hill; 50 km from railway by road​	Concentrate will be trucked (~250 km) to the Glencore smelter at Mount Isa for processing. Eva has a 5 year off-take agreement with Glencore. ​ ​ Alternatives are available through Townsville port (~850 km) ​

Sources for above table:
Kalkaroo
https://www.asx.com.au/asxpdf/20190618/pdf/445xm614yw5s9f.pdf

Eva (2020)
https://www.cumtn.com/site/assets/files/3661/ni_43-101_eva_copper_fs_update_final_07-may-2020_2.pdf



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.