3rd Aug 2015 09:45
LONDON (Alliance News) - Metminco Ltd on Monday said it has made good progress on the Los Calatos project in southern Peru in the quarter to the end of June.
Last week, the company said it will produce over 765,000 tonnes of copper and generate USD2.78 billion in earnings over 17 years. It recently received an updated mineral resource estimate for the project and has now received the results from an independent mining study to "determine the optimum development approach" for the project.
The miner said the project will produce 765,160 tonnes of copper over 17 years, generating a total of USD2.78 billion in earnings before interest, tax, depreciation and amortisation. Los Calatos has a net present value of USD285 million with a payback period of 5.3 years.
Metminco said on Monday is remains in talks with a number of possible partners for Los Calatos in relation to funding the development of the project.
"We have made excellent progress at Los Calatos during the quarter with the conclusion of both an updated mineral resource estimate and the strategic mining study. The mining study has identified a significantly lower capital cost development option that has the potential to yield good financial returns. The company will now focus on advancing the project towards the conclusion of a feasibility study, for which funding us required," said William Howe, Metminco's managing director.
Metminco shares were up 4.6% to 0.251 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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