23rd Apr 2018 11:51
LONDON (Alliance News) - Atalaya Mining PLC said Monday it has completed a pre-feasibility study for a proposed copper open pit and concentrator at its Proyecto Touro in north west Spain.
The study showed the net present value post-tax was at an 8% discount rate of USD180 million, using a long term copper price of USD3.00 per pound, and this leaves it with an internal rate of return of 20.5%.
The project has a total free cash flow of USD489 million with annual average free cash flow of USD60 million from commercial production.
The estimated average cash cost was USD1.73 per pound of copper and all-in sustaining costs of USD1.85 per pound.
There will be pre-production capital expenditure of USD165 million with additional expansion capital of about USD30.0 million in year eight of the project. There is a "low" life-of-mine sustaining capital expenditure of USD55.0 million.
The study says there is an estimated 392,000 tonnes of contained copper and 2.1 million ounces of silver at Proyecto Touro, with an average yearly production of 30,000 tonnes copper and 70,000 ounces of silver in concentrate.
There is an expected two years of development with 12 years of operation.
Chief Executive Alberto Lavandeira said: "The successful outcome of this study is a significant milestone for Atalaya, and validates our initial interest in the project. The strong project economics reinforce the company's approach to operations: to discover and develop low-cost, safe and reliable assets.
"We look forward with confidence to updating the market with future progress at Proyecto Touro, and continuing our development towards becoming a multi-asset copper producer."
Shares in Atalaya were up 5.6% Monday morning at 248.70 pence each.
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