Petra Capital last published a research report on SVY in late 2020. The report can be access on SVY's web site under Investors & Media -> Broker Reports. At the time, they valued the open pit operation at Thursday's Gossan at A$521 million. Obviously, the price and cost environment has changed since the report was published but the key assumptions used by the analyst are as follows:
Discount rate: unknown Pre-production capex: A$250 million Construction period: 2 years Ore mined/processed: 1.5 Mt from chalcocite blanket + 1.5 Mt from Cayley Lode, per annum Mine life: approx. 6.5 to 7 years Copper price: US$3.00/lb Gold price: US$1,600-1,800/oz AUD:USD: 0.71-0.72 AISC: A$2.46 per lb payable Cu (not including Au and Ag credits)
Total ore processed from Cayley Lode is approximately 10 Mt, at a grade of approx. 2% Cu (not Cu eq.). Total ore processed from the chalcocite blanket is also around 10 Mt, at a grade of 0.3% Cu.
I think the resource estimate for the Cayley Lode open pit may come in smaller at around 150 kt of contained Cu eq. However, the above production profile can be achieved by mining ore from Mt Ararat, as suggested by Chris Cairns in his most recent interviews/presentations.
The copper price is now significantly higher whilst costs are likely to be materially higher as well.
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