HAV (ASX) Kalkaroo Copper Project Peer Comparison

Originally posted by Clark888: ↑
Kalkaroo Project Peer Comparison (Undeveloped Australian Projects, Ore Reserves, PFS or FS)

Continuing my focus on separating Havilah by articulating why Havilah has the best risk-reward equation, I have used Havilah's flagship Kalkaroo project alongside Rex Mineral Limited’s (ASX: RXM) Hillside copper-gold project, for the third and last undeveloped Australian copper peer comparison for the ASX listed mining junior pack.

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 Hillside copper-gold project FS Update additional information (RXM ASX announcement of 31 July 2020).

Notes:
Apart from Hillside, RXM also has the Hog Ranch gold project in Nevada.

Hillside copper-gold project pre-production capital is stated as $585 million (US$410 million). Project financing has not been sorted. RXM has opened financing discussions on Hillside, whilst pursuing joint venture and funding partner discussions through Grant Samuel.

Cash on the RXM balance sheet at 31 December 2020 was $9 million (estimated 4.45 quarters of funding available).

The current RXM market capitalisation is $73 million.

Top 20 shareholders held 27% of the RXM ordinary shares on the share register at 31 July 2020. There were no substantial shareholders at that date.

It should be pointed out that Rex Minerals used a very favourable discount rate and FX rate in its Hillside Feasibility Study Update.

Column 1 Column 2 Column 3
1
Kalkaroo Copper-Gold Project (South Australia)
Hillside Copper-Gold Project (South Australia)
2
Company
Havilah Resources Limited (ASX: HAV)
Rex Minerals Limited (ASX: RXM)
3
Ownership of project
100%
100%
4
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
Feasibility Study Update published 28 July 2020; Mining Lease granted September 2014; PEPR approved

A Native Title Claim has been lodged covering the entire Yorke Peninsula. However, no Native Title agreements are required in relation to the Hillside ML
5
Pre-tax NPV
$903 million
$751 million
6
Discount rate
7.5% (2019 real)
5% (2020 real)
7
A$/US$ exchange rate
0.75
0.70
8
Copper price (long-term)
US$3.10/lb
US$3.00/lb
9
Gold price (long-term)
US$1,500/oz
US$1,550/oz
10
IRR (pre-tax)
26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)
N/A
11
IRR (post-tax)
21% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)
16.2%
12
JORC Ore Reserve
474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification
509,262 copper tonnes; 431,504 gold ounces. 51% and 49% in ‘Proved’ and 'Probable' classification respectively
13
Mining method
Open pit
Open pit
14
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
In reporting the mineral resource, a copper cut-off of 0.2% was used
15
Average production (as recovered metal) anticipated
Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.
Approximately 35,000 tonnes copper and 24,000 ounces gold p.a.
16
Life of mine (processing)
Minimum 13 years
Initial 12 years
17
Waste: Ore ratio
3.5:1 (including pre-strip)
6.7:1 (after initial pre-strip)
18
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
The transport of copper-gold concentrate product will be via trucks to Port Adelaide, South Australia, as distance of ~150 km
Sources for above table:
Kalkaroo
https://www.asx.com.au/asxpdf/20190618/pdf/445xm614yw5s9f.pdf

Hillside
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02261638-3A546066?access_token=83ff96335c2d45a094df02a206a39ff4

For those that are interested, Hillside Deposit - Geological Model & Alteration Paragenesis presented by Graham S. Teale at the 2-3 December 2019 IOCG Mineral Systems Workshop: see my post # 42160258

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.
Expand
FYI Euroz Hartleys has commenced research on fellow SA copper-gold developer and explorer RXM with an ‘Initiation of Coverage’ report (Post #: 53792011).

Below are two of the ASX copper peer charts from Euroz Hartleys’ report dated 25 May 2021.

Based on ASX copper peer metrics produced by Euroz Hartleys, HAV has a:
EV/Cu reserve of ~US$0.05/lb Cu (vs peer median of ~US$0.50/lb Cu); and

EV/Cu resource ~US$0.02/lb Cu (vs peer median of ~US$0.15/lb Cu).

DYOR

No.	Vol.	Price($)
1	10000	18.5¢

No.

Vol.

Price($)

10000

18.5¢

Price($)	Vol.	No.
20.0¢	8000	2

Price($)

Vol.

No.

20.0¢

8000

No.	Vol.	Price($)
2	102197	0.180
2	53171	0.175
3	35000	0.170
5	160784	0.165
3	100250	0.160

No.

Vol.

Price($)

102197

0.180

53171

0.175

35000

0.170

160784

0.165

100250

0.160

Price($)	Vol.	No.
0.200	8000	2
0.250	2610	1
0.260	4100	1
0.000	0	0
0.000	0	0

Price($)

Vol.

No.

0.200

8000

0.250

2610

0.260

4100

0.000

(20min delay)
Last 19.0¢		Change 0.015(8.57%)		Mkt cap ! $60.16M

Open	High	Low	Value	Volume
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	Column 1	Column 2	Column 3
1		Kalkaroo Copper-Gold Project (South Australia)	Hillside Copper-Gold Project (South Australia)
2	Company	Havilah Resources Limited (ASX: HAV)	Rex Minerals Limited (ASX: RXM)
3	Ownership of project	100%	100%
4	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	Feasibility Study Update published 28 July 2020; Mining Lease granted September 2014; PEPR approved A Native Title Claim has been lodged covering the entire Yorke Peninsula. However, no Native Title agreements are required in relation to the Hillside ML
5	Pre-tax NPV	$903 million	$751 million
6	Discount rate	7.5% (2019 real)	5% (2020 real)
7	A$/US$ exchange rate	0.75	0.70
8	Copper price (long-term)	US$3.10/lb	US$3.00/lb
9	Gold price (long-term)	US$1,500/oz	US$1,550/oz
10	IRR (pre-tax)	26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)	N/A
11	IRR (post-tax)	21% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)	16.2%
12	JORC Ore Reserve	474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification	509,262 copper tonnes; 431,504 gold ounces. 51% and 49% in ‘Proved’ and 'Probable' classification respectively
13	Mining method	Open pit	Open pit
14	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	In reporting the mineral resource, a copper cut-off of 0.2% was used
15	Average production (as recovered metal) anticipated	Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.	Approximately 35,000 tonnes copper and 24,000 ounces gold p.a.
16	Life of mine (processing)	Minimum 13 years	Initial 12 years
17	Waste: Ore ratio	3.5:1 (including pre-strip)	6.7:1 (after initial pre-strip)
18	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	The transport of copper-gold concentrate product will be via trucks to Port Adelaide, South Australia, as distance of ~150 km

FYI Euroz Hartleys has commenced research on fellow SA...

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