Let’s understand the value of these deposits, shall we? | Paola Rojas’ Blog – Issue #2

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’ BLOGpaolarojas.blog

If you enjoy my content on socials and are seeking more – great news!

Now, you can get additional resources…


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