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Ivanhoe Mines (TSX:IVN) released the findings of an independent preliminary economic assessment for the company’s Kamoa copper discovery in the Democratic Republic of Congo.
Ivanhoe Mines (TSX:IVN) released the findings of an independent preliminary economic assessment for the company’s Kamoa copper discovery in the Democratic Republic of Congo.
Highlights from the PEA include:
- A large mine and smelter would be developed using a two-phased approach.
- Pre-tax internal rate of return of 18.5%; after-tax IRR of 15.2%.
- After-tax Net Present Value, at an 8% discount rate, of US$2.5 billion.
- Pre-tax Net Present Value, at an 8% discount rate, of US$4.3 billion.
- Cash costs of US$1.18 per pound of copper would rank Kamoa near the bottom of the global cash-cost curve.
- Steady-state production target of 300,000 tonnes per year of blister copper, which would establish Kamoa as one of the world’s largest copper mines, with the highest grade.
- Low pre-production capital requirement of approximately US$1.4 billion.
- Early cash flows would be generated from the sale of high-grade copper concentrate.
- A smaller-scale start-up would establish an operating platform to support expansion.
Executive Chairman, Robert Friedland, said in a statement:
Kamoa has the rare combination of a very high copper grade and very large tonnage, qualities that position Kamoa to become a substantial copper producer with one of the lowest cash costs anywhere in the world. This thorough, independent assessment gives us added confidence as we proceed with the planning of our next steps to advance Kamoa’s development into a world-class copper mine.