- Centaurus Metals (CTM) has completed the scoping study for its Jaguar Nickel Sulphide Project in the Carajás Mineral Province in northern Brazil
- The study considered open pit and underground mining over an initial 10-year mine life to produce 20,000 tonnes of nickel per year
- Centaurus would need to spend around US$178 million (approximately A$233 million) to get Jaguar to the point of production, but with low operating costs this could be paid back within two years
- Managing Director Darren Gordon said the project economics outlined in the base case scoping study provide the company with the confidence to immediately commence a pre-feasibility study
- Some banks are forecasting the metal will fetch a higher price in 2024 when first production is planned for Jaguar, and if these predictions eventuate the value of the project could be elevated to over $1 billion
- Shares have dipped 4.3 per cent to trade at 78 cents
Centaurus Metals (CTM) has completed the scoping study for its Jaguar Nickel Sulphide Project in the Carajás Mineral Province in northern Brazil.
The base case scoping study considered open pit and underground mining over an initial 10-year mine life to produce 20,000 tonnes of nickel per year.
It is estimated the project would generate more than 1000 construction jobs, 190 full-time operational positions and employ up to 500 mining contractors.
Centaurus would need to spend around US$178 million (approximately A$233 million) to get Jaguar to the point of production, but with low operating costs, this could be paid back within two years.
Managing Director Darren Gordon said a highlight of the study is the low C1 operating costs of approximately US$2.41/lb (around A$3.15/Ib) of nickel.
“The low C1 cash costs reflect both the significant open pit volumes and the low operating cost environment in Brazil, and results in high operating margins that will be resilient to fluctuations in the nickel price and exchange rates.”
“At a conservative life-of-mine nickel price of US$7.50/lb, the base case project delivers a post-tax net present value (NPV) of approximately A$604 million, an internal rate of return (IRR) of approximately 54 per cent.”
“This gives us the confidence to push ahead with further feasibility activities, with a pre-feasibility study scheduled to commence immediately and pave the way for a definitive feasibility study next year that will allow us to make a final investment decision,” he said.
Some banks are forecasting the metal will fetch a higher price in 2024 when first production is planned for Jaguar, and if these predictions eventuate the value of the project could be elevated.
“At a nickel price of US$9/lb (A$11.78), which is forecast by a number of the investment banks for the middle of this decade when operations at Jaguar are targeted to commence, the project’s post-tax NPV would rise to approximately $1.01 billion, with an IRR of approximately 80 per cent,” Darren continued.
Shares have dipped 4.3 per cent to trade at 78 cents at 1:22 pm AEDT.