Cyprium Metals (ASX:CYM,OTC Pink:CYPMF) released a prefeasibility study for the Nifty copper complex on November 27, confirming the viability of large-scale copper-in-concentrate output at the site.
The company intends to refurbish and expand a brownfield concentrator and add a new surface mine. Capital costs are set at US$239 million for the refurbishing and expansion, as well as upgrading infrastructure.
The prefeasibility study also confirms the economics of producing copper cathode via the re-treatment of heap-leach pads one to six at Nifty. Capital costs are set at US$30 million, with total project costs of US$46 million.
“With 797,000 tonnes of copper in total reserve supporting more than $3 billion dollars of pre-tax cash flow, Nifty is a large and important copper source and economic engine for Australia,” said Executive Chair Matt Fifield.
Life-of-mine production at Nifty is expected to be 718,000 tonnes of copper over a 17 year operating period, with annual output projected to average 37,300 tonnes per year over the first 10 years.
“There are few near-term copper development opportunities that present the scale, longevity and positive economics of Nifty’s Concentrate Project, and really none that have the speed and cost advantages of a permitted brownfield site and access to Western Australia’s world-class supply chain,” Fifield added in the company's release.
The prefeasibility study also outlines a net present value of US$1.13 billion at an 8 percent discount, along with a 28.9 percent internal rate of return. Those figures comes to US$756 million and 23.6 percent after tax.
Cyprium acquired Nifty in February 2021. The project is located on the western edge of the Great Sandy Desert in the Northeastern Pilbara region of Western Australia, and previously produced over 700,000 tonnes of copper.
In July, the company announced a partnership with Glencore (LSE:GLEN,OTC Pink:GLCNF) to restart Nifty. Cyprium entered into a senior secured loan facility worth AU$40 million with Glencore at the end of August.
It closed a month later, together with the execution of offtakes relating to the partnership.
Cyprium has secured all major permits for Nifty, with the earliest projection for concentrate production in 2026.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
