That was actually why I did those Australian copper peer comparisons. To demonstrate that Kalkaroo has superior metrics, including one of the highest NPV undeveloped copper-gold projects in Australia.
Based on just the Kalkaroo project NPV metrics, in my opinion, the HAV share price should be well above $1 per share.
The fact that HAV is still trading at 21 cents is incredibly frustrating. But I keep focused on the 'prize'.
"Looks like HAV is significantly undervalued based on comparisons to peers. Why would that be?"
"Is the PEPR pending a concern or is it the track record of the BOD to be able to raise the necessary capital?"
A. DEM (the regulator for mining in South Australia) guidance indicates a minimum 3 to 4 month assessment and approval period, subject to there being no major revisions required.
The PEPR is simply a document that describes how Havilah would monitor, minimise and mitigate any impacts of the proposed West Kalkaroo mining operation on the natural environment and local population.
It should be fairly straightforward. DEM will assess it, and if necessary, ask Havilah for revision of the PEPR.
B. Kalkaroo PFS work suggested it could be under A$100 million for the overburden pre-strip, construction of a CIP processing facility and site works for the gold open pit at West Kalkaroo. Havilah has said this is potentially within its reach via some gold-linked funding arrangement or maybe with a private partner.
Havilah has stated it is happy to share project risk with a development partner and it could potentially sell down to become the minority partner or sell the project entirely. Havilah said it does not have to be the operator and is not keen about excessively diluting its existing shareholders.
[from the July 2020 interview with Dr Chris Giles, see 3rd & 4th pages of interview]
Notes:
1. For now, Havilah has 'parked' the larger full-scale Kalkaroo project, due to capital constraint, to focus on the West Kalkaroo gold open pit as the first stage.
For the full-scale Kalkaroo copper-gold project alternative, the 18 June 2019 Kalkaroo PFS indicated pre-production CAPEX of A$332 million, including A$76 million for a mining fleet and A$46 million contingency, which is clearly beyond Havilah's current means.
2. For the Kalkaroo project, during calendar year 2019 two (2) separate Independent Technical Experts (RPM and AMC) have completed due diligence/verification work on the Kalkaroo copper-gold project. Neither of them found any 'show stoppers' or 'red flags'.
I recommend that you read these 2 reports, when you have time. See Post # 50038589 for the relevant links.
3. If you have not already seen it, this Havilah YouTube video was originally published on 7 December 2013 by the Australian Institute of Geoscientists ('AIG'):
For me, the first 15-20 minutes of the AIG presentation are the most important for any HAV shareholder:
i. Kalkaroo discovery history;
ii. Integration of Placer/MIM/Newcrest data for the first time (via Vulcan 3D software);
iii. The message of how the founders were able to use the Vulcan 3D software to do what none of the other 3 majors had previously done; and
iv. Drilling 65 consecutive RC (reverse circulation) holes, which all hit ore grade mineralisation, to expand it from a 5-10 Mt resource (by Placer during 1996) to an initial 70Mt 0.5% Cu and 0.5 g/t Au (by Havilah during 2006).
If you watch it to the end (warning, it is 1 hour 8 minutes long), you will:
(a) Visually see in 3D how the Kalkaroo copper-gold ore twists and turns through the structure;
(b) Understand why the saddle area drilled at Kalkaroo during 2012 did not turn out as planned; and
(c) Understand why HAV has a roadmap to find another Kalkaroo or two within a 20 km radius on its Kalkaroo exploration tenements.
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.
(20min delay)