Copperwood Feasibility Study: $507M NPV, 33.4% IRR
Highland Copper Company Inc.'s Copperwood in Michigan, USA has a Feasibility Study outlining an after-tax NPV of $507M, an after-tax IRR of 33.4%, and initial capital of $391M. The mine plan runs 11 years at about 30 ktpa Cu per year.
Highland Copper Company Inc.'s Copperwood has reported Feasibility Study results for the copper project in Michigan, USA. The study headlines an after-tax net present value of $507M at a 8% discount rate. It reflects Highland Copper Company Inc.'s (HI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $507M using a 8% discount rate. After-tax IRR is 33.4%. Initial capital expenditure is estimated at $391M. The study models a payback period of 2 years. All-in sustaining costs are pegged at 1.99 USD/lb. Economics are based on $4.00/lb Cu (base case for reserves); $5.00/lb Cu (economic summary base case).
Production and mine plan. The project envisions an underground operation. Life of mine is 11 years. Average annual production is approximately 30 ktpa Cu. Average head grade is 1.51% Cu (M&I resource grade). Metallurgical recovery averages 87.6%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Sliding scale 4.0% NSR royalty to leaseholders; 1.5% NSR royalty to Osisko Gold Royalties Ltd.; additional 11.5% silver mineral royalty payable to Osisko Stream Royalties (reserves basis). Also 5.5% NSR royalty on Copperwood Project to leaseholders (resource basis)..
These figures are extracted from Highland Copper Company Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 18.2 Mt | 1.49% Cu, 4.47 g/t Ag | 597 Mlbs Cu, 2.6 Moz Ag |
| Probable | 7.5 Mt | 1.34% Cu, 2.56 g/t Ag | 222 Mlbs Cu, 0.6 Moz Ag |
| Proven & Probable | 25.7 Mt | 1.45% Cu, 3.91 g/t Ag | 820 Mlbs Cu, 3.2 Moz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 28.0 Mt | 1.7% Cu, 4.5 g/t Ag | 1,025 Mlbs Cu, 4.1 Moz Ag |
| Indicated | 26.2 Mt | 1.3% Cu, 2.8 g/t Ag | 757 Mlbs Cu, 2.2 Moz Ag |
| Measured & Indicated | 54.2 Mt | 1.51% Cu | 1.8 Blbs Cu |
| Inferred | 79.1 Mt | 1.09% Cu | 1.9 Blbs Cu |
Our Analysis
- IRR after-tax
- 33.4%
higher than 88% of 26 projects we track
- NPV after-tax
- $507M
- Initial capex
- $391M
77% of NPV
- Payback
- 2yrs
- Mine life
- 11yrs
- Discount rate
- 8%
- Study price assumption
- $4.00/lb Cu (base case for reserves); $5.00/lb Cu (economic summary base case)
- Spot copper today
- $6.29/lb
The 33.4% after-tax IRR places this project in the top quartile of the 26 copper projects we track, well above the practical financing hurdle of ~15% for developers and the ~20% threshold for higher-risk single-asset juniors. The 8% discount rate used for NPV reporting is within standard range but on the lower side, which flatters the $507M NPV; a higher rate would compress that figure. The NPV stands at roughly 6.5x the company’s market cap, a gap that cuts both ways—it could signal the market has not yet priced in the asset’s value, or it may reflect skepticism about financing, dilution, or execution risk.
The $391M initial capex equals 77% of NPV, a moderately capital-intensive profile that introduces funding risk given the company’s small market cap; dilution is a real concern for a developer of this scale. Michigan, USA is a mining-friendly jurisdiction, lowering political risk but not eliminating permitting timelines. The study’s base-case price of $4.00/lb Cu sits well below the current spot of $6.29/lb, suggesting material upside to returns if prices hold. The single most important watch-item is the financing plan: whether the company can secure project-level debt without excessive equity dilution.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.