37.7 Billion Lbs at 1% CutoffFor Kakula at an average grade of 2.93%. The new 12 Mtpa scenario envisions lower grades down to 2.03% for the second half of a 44 year life of mine. So, nearly all of this will be extracted. They can't extract 1% but they can and will 2.93% at a 1% cutoff. If we also include the massive resource at Kamoa, we'll be long gone by the time this gets mined out. The 3% cutoff provides rapid payback and hefty profits in the first decade of production. Then the 2% and finally 1% cutoffs gradually enter the picture. Profits are front loaded for investors, and drop off further out in later decades, along with the cutoff. This maximizes NPV return to investors. Unless more high grade becomes available, which is a distinct possibility.
Indicated resource was 116 MT indicated at 6.09% at the 3% cutoff. They've added 58 MT at an average grade of 4.68%. So, grade is beginning to fall off as they step out. Total contained metal increased by 33%, while indicated tonnage improved 50% at 3% cutoff.
One more thing. This is going to get bigger.