For curiosity, I wanted to determine the value of the Stavely Minerals prospects if processed based on current metal prices and flotation-leach plant recoveries.
The prospects (Cayley Lode and Carroll's Copper Deposit) roughly have an economic valuation of $3 billion (see table below) which equates to the SVY $59 million market capitalisation representing less than 2% of the resources potential value. No wonder Chris Cairns is frustrated by the market not assigning fair value to the business.
In terms of the upside potential of a Cu-Au Porphyry system, a technical paper noted the median resource size of 20 global porphyry systems found they contain 160 Mt of ore at 0.38 g/t Gold and 0.55% Copper per deposit. This equates to typical porphyry systems containing $15 billion of recoverable copper and gold metals at current metal prices. For comparison, Telfer gold-copper mine resource is valued at $23 billion, Boddington gold-copper mine is valued at $37 billion and Cadia is worth an amazing $167 billion.
Once a porphyry system is found then developing, mining and processing the orebody for multiple decades is guaranteed due to the vast riches they offer.
IMHO, Stavely Minerals offers multiple porphyry regional discovery upside due to the large number of exploration targets yet to be drilled in this under-explored region and an explosive upward re-rating of the share price as the market re-evaluates the company.
SVY Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
