1/x Commonly asked question. What is a significant #mining #discovery? π§΅
In our book it is upper Tier 2, Tier 1 discovery.
Okay, how do these tiers actually work?
In our book it is upper Tier 2, Tier 1 discovery.
Okay, how do these tiers actually work?
2/x
Tier 1 deposits have NPV greater than 1 Bln USD. Typical discount rate used is 8% i.e. NPV8
They are rare to find! See the graph below from BHP showing frequency distribution of copper discoveries between 1985-2003.
Tier 1 deposits have NPV greater than 1 Bln USD. Typical discount rate used is 8% i.e. NPV8
They are rare to find! See the graph below from BHP showing frequency distribution of copper discoveries between 1985-2003.
3/x
Tier 2 deposits have NPV of 200-1000 Mln USD.
They are also considered significant by many definitions.
Tier 2 deposits have NPV of 200-1000 Mln USD.
They are also considered significant by many definitions.
4/x Tier 3 deposits are small and have a high sensitivity to commodity prices. The NPV lies between 10-200 Mln USD.
5/x Tier 4 deposits have a notional value of 10 Mln USD and below. This is where most of deposits falls into.
6/x So how does it translate to tonnage and grade for different commodities?
e.g. What "tier" is 500 Mt @ 0.8% Cu? How much is it worth?
I cover these aspects in more details in #Geology101 for Investors course. More info on Equivest website.
e.g. What "tier" is 500 Mt @ 0.8% Cu? How much is it worth?
I cover these aspects in more details in #Geology101 for Investors course. More info on Equivest website.
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
