Shares in Celsius Resources Ltd (ASX: CLA) were strongly higher on Friday after the company released a definitive feasibility study into its project in the Philippines.
The company said in a statement to the ASX that the Maalinao-Caigutan-Biyog copper and gold project had a net present value of $1.98 billion based on conservative copper and gold prices of $4.30 per pound and US$3,000 per ounce, respectively, for the first nine years.
At the current spot prices, the net present value increased to $2.9 billion.
Image source: Getty Images
Long life project
The definitive feasibility study envisages a 35-year mine life, based on a maiden ore reserve of 130.2 million tonnes of ore.
A high-grade core would be mined for the first 10 years of the mine's life, which was expected to generate US$230 million in EBITDA per annum over that period.
The company said in its statement:
The definitive feasibility study follows a scoping study announced in December 2021 and has been prepared with a focus on optimising the underground mine plan, advancing the process plant design, refining surface and underground infrastructure layouts, and developing tender-ready early work packages. The selected mining method is sub-level open stoping, reflecting the geometry and continuity of the mineralisation and prevailing geotechnical conditions. Ore will be processed through a conventional crushing, grinding and flotation concentrator, producing a high-quality copper-gold concentrate.
Celsius Executive Director Neil Grimes said completing the study was a significant milestone for the company.
The study demonstrates a technically robust and economically enhanced project, with competitive capital intensity and operating costs. The company is progressing funding and offtake discussions to advance the project toward a final investment decision and construction.
During the initial 10-year phase, the company expects to mine 24.5 million tonnes of ore at a copper grade of 1.08% and 0.51 grams per tonne of gold, and the project is expected to have a 4.7-year payback period at the conservative commodity prices used in the study.
Celsius has a 40% interest in the project, with Makilala Mining Company (MMCI) owning the remainder.
MMCI Chief Operations Officer Patrique Jane Duran said the study showed the project was robust.
The completion of the definitive feasibility study represents a major milestone and value inflection point for the MCB Copper-Gold Project, confirming it as a long-life, technically robust and finance-ready underground operation with strong economics and a clear development plan. The study validates more than a decade of technical work and provides a solid foundation for funding execution and long-term value creation.
Celsius Resources shares were 15% higher on Friday at 2.3 cents.
The company was valued at $64.8 million at the close of trade on Thursday.
