Hey hey! It’s Sunday so let’s grab a cup of coffee* and dig in.
Value is in the eye of the beholder. Kind of.
Economic studies are how we put a value on both reserves and resources. From the rough strokes we get from a scoping study, to PEAs and beyond, clarity improves and certainty rises. Here’s the definition for PEA:
‘a study that includes an economic analysis on the potential viability of mineral resources taken at an early stage of the project, prior to the completion of a preliminary feasibility study’ -CIM
All great things, right? Yes… but studies can be terribly nuanced and potential risks can be hidden in the complexity.
I believe all mining investors (or those contemplating the sector) need at least a basic knowledge of the different types of economic studies, and more specifically:
- Their main goals
- Typical timelines for completion
- The expected outcomes in each step
- The accuracy we can expect from each study
- The range of costs traditionally associated with completion
This will help you predict and prepare for positive (and negative) impacts in your portfolio.
If you already mastered these, you’ve got a huge advantage in the game. What a legend!
If you haven’t, I’ll tell you a little secret… I recently covered these in the featured thread below. Dive right in and tell me if it helps!
That’s it for today. Happy Sunday!
PS: If you still have some coffee left, I’ve included a few extra pieces that you may also enjoy reading below.
Featured thread
Every week I publish a new thread with actionable tips, ideas, or concepts for investors. Here’s a good one:
Last week on my blog
You may have missed this piece – so here you go:
Lithium investing 101 to help you venture into this growing theme (whether you already invest in mining or not) — paolarojas.blog
Lithium is the core of the batteries we use daily. All critical metals will continue expanding as the energy transition speeds up.
Last week’s most popular tweet
I tweet daily and love keeping track of what resonates the most as I feel it’s a great indication of investor sentiment. This tweet got the most engagement overall:
A gem from the archives
I wrote this piece a while back but since it’s still 100% relevant here it is, in case you missed it or want to read it again:
These 10 copper deposits can ignite the energy transition and add 200b lbs of metal supply (for mining investors) — paolarojas.blog
There is no decarbonisation without copper, and we’ve been underinvesting for over a decade. However, there are projects in the pipeline, if we can get past roadblocks…
*or your drink of choice!
Keen to dig deeper?
Shop – PAOLA ROJAS’ BLOG — paolarojas.blog
If you enjoy my content on socials and are seeking more – great news!
Now, you can get additional resources…
PAOLA ROJAS' BLOG 