For the Kalkaroo project, two (2) separate Independent Technical Experts have completed due diligence/verification work on the Kalkaroo copper-gold project during calendar year 2019.
Neither of them found any 'show stoppers' or 'red flags'.
I recommend that you read those 2 reports, when you have time.
RPM concluded that “the [Kalkaroo] Project has no significant issues that would prevent successful mining and processing of the ore. Furthermore, there are a number of opportunities to increase the Mineral Resource, increase product output and add value to the Project.”
RPM's conclusion is based on a copper price of US$2.89/lb and gold price of US$1,200/oz.
The relevant conclusions from AMC's Independent Technical Expert Report (see 'Assessment of the Project's key technical parameters' on page v of its opening letter) were:
1. The mine plan is supported by the PFS and the total tonnage and grade of the ore mined matched the Ore Reserve. AMC considers that the mine plan is achievable and is based on reasonable grounds. AMC notes that gold production shown in the spreadsheet model is approximately 29 koz of gold less than is reported in the detailed processing schedule. AMC has included this additional contained metal in the production schedules provided to BDO.
2. The plans for processing ore together with the estimates of copper and gold recovery to concentrates are supported by testwork carried out as part of the PFS, and in AMC’s opinion are based on reasonable grounds.
3. Capital costs included in the spreadsheet model are based on work carried out at during the PFS. AMC considers them to be based on reasonable grounds.
4. In AMC’s opinion, the operating costs estimates for mining and G&A are achievable but optimistic when benchmarked against comparable open pit operations. AMC has doubled the G&A costs in the inputs provided to BDO. AMC believes that the adjustments and the resulting operating costs provided to BDO are based on reasonable grounds."[My emphasis added]
In its Independent Technical Report (Section 2.15 on pages 28 & 29), AMR specifically identified 'Risks and Opportunities' in relation to the Kalkaroo Project. If you have not already read it, I recommend you do.
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.
HAV Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)