Highlights of the PEA study are as follows ...
1. Initial capital expenditure of $717.7 million and sustaining capital of $164.4 for total estimated capital expenditures of $882.1 million over the estimated 12-year mine life. In addition, closure and reclamation costs are estimated at $81.6 million.
2. Pre-tax Net Present Value (NPV)8% of $927.7 million calculated at the beginning of the two-year construction period and an Internal Rate of Return, IRR, of 22.8% for the base case.
3. After-tax NPV8% of $537.2 million and after-tax IRR of 17.9% for the base case.
Estimated, pre-tax, payback of initial capital in 4.6 years and 5.0 years after-tax.
Minimum 12-year mine life supporting a maximum 10,000 tonne-per-day conventional grinding mill-and-flotation circuit to produce copper, zinc and lead concentrates containing significant gold and silver by-products.
4. Life of mine strip ratio of 8.39 to 1.
5. Average annual payable production projected to be 125 million pounds of copper, 152 million pounds of zinc, 24 million pounds of lead, 29,000 ounces of gold and 2.5 million ounces of silver for life of mine. On a copper equivalent basis, equates to 210 million pounds of copper per year.
6. A capital intensity ratio on initial capital of $6,995 per tonne of average annual copper produced.
7. Estimated cash costs of $0.62 per lb of payable copper (C1 cash costs include on-site mining and processing costs, road tolls, transport, royalties and is net of by-product credits).
8. Total all-in cash costs (initial/sustaining capital, operating, transportation, treatment and refining charges, road toll, and by-product metal credits) estimated at $1.26 per lb of payable copper.
9. Economic indicators justify moving forward with a pre-feasibility study.
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