What's Happening?
Celsius Resources has published a definitive feasibility study for its Maalinao-Caigutan-Biyog (MCB) copper-gold project in the Philippines. The study outlines a 35-year underground development plan with
a post-tax net present value (NPV) of $771 million at an 8% discount rate and a post-tax internal rate of return (IRR) of 24% based on long-range price assumptions. The project is expected to yield higher returns using current spot prices. The study estimates a pre-tax NPV of $1.3 billion with a pre-tax IRR of 31%, assuming copper prices at $4.30 per pound and gold at $3,000 per ounce for the first nine years. With spot prices of $6.00 per pound of copper and $4,500 per ounce of gold, the pre-tax NPV could increase to $1.9 billion with an IRR of 42%. The project is supported by a JORC 2012 mineral resource of 343 million tonnes, containing significant amounts of copper and gold.
Why It's Important?
The feasibility study positions the MCB project as a leading near-term copper-gold development opportunity in the Philippines. It demonstrates a technically robust and economically viable project with competitive capital intensity and operating costs. The project is expected to contribute significantly to the copper and gold supply, which is crucial given the increasing global demand for these metals. The successful development of the MCB project could enhance Celsius Resources' market position and provide substantial returns to shareholders. Additionally, the project aligns with responsible mining and environmental, social, and governance (ESG) principles, potentially setting a benchmark for future mining projects in the region.
What's Next?
Celsius Resources is progressing with funding and offtake discussions to advance the project towards a final investment decision and construction. The company aims to make a final investment decision in the first quarter of the year, with commissioning and first concentrate expected in the second and third quarters of 2028, respectively. There is potential for resource extensions at depth and a possible throughput expansion, which could further enhance the project's value. The company is also focused on engaging with local communities and stakeholders to ensure the project's successful implementation.
