Copperwood Feasibility Study: $168M NPV, 17.6% IRR
Highland Copper Company Inc.'s Copperwood in Michigan, USA (Upper Peninsula) has a Feasibility Study outlining an after-tax NPV of $168M, an after-tax IRR of 17.6%, and initial capital of $391M. The mine plan runs 11 years at about 30 kt Cu per year.
Highland Copper Company Inc.'s Copperwood has reported Feasibility Study results for the copper project in Michigan, USA (Upper Peninsula). The study headlines an after-tax net present value of $168M 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 $168M using a 8% discount rate. After-tax IRR is 17.6%. Initial capital expenditure is estimated at $391M. The study models a payback period of 3.5 years. All-in sustaining costs are pegged at 1.99 USD/lb (LOM average C1 cash cost). Economics are based on Base case US$4.00/lb Cu (also $5.00/lb and $6.00/lb cases); silver $25/oz in resource/reserve estimates; CAD/USD 0.80.
Production and mine plan. The project envisions an underground (ramp-accessed room-and-pillar) operation. Life of mine is 11 years. Average annual production is approximately 30 kt Cu. Average head grade is 1.51% Cu (M&I resource); reserves 1.45% Cu, 3.91 g/t Ag. 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 to leaseholders (5.5% NSR used in resource estimate); 1.5% NSR to Osisko Gold Royalties plus additional 11.5% silver mineral royalty payable to Osisko Stream Royalties.
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 Mlb Cu, 2.6 Moz Ag |
| Probable | 7.5 Mt | 1.34% Cu, 2.56 g/t Ag | 222 Mlb Cu, 0.6 Moz Ag |
| Proven & Probable | 25.7 Mt | 1.45% Cu, 3.91 g/t Ag | 820 Mlb Cu, 3.2 Moz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 27.9 Mt | 1.7% Cu, 4.5 g/t Ag | 1,023 Mlb Cu, 4.1 Moz Ag |
| Indicated | 16.1 Mt | 1.4% Cu, 2.4 g/t Ag | 504 Mlb Cu, 1.2 Moz Ag |
| Measured & Indicated (LCBS) | 44.0 Mt | 1.6% Cu, 3.7 g/t Ag | 1,527 Mlb Cu, 5.3 Moz Ag |
| Inferred (LCBS) | 2.3 Mt | 1.1% Cu, 1.2 g/t Ag | 56 Mlb Cu, 0.1 Moz Ag |
| Measured (UCBS) | 0.1 Mt | 1.0% Cu, 4.6 g/t Ag | 2.0 Mlb Cu |
| Indicated (UCBS) | 10.1 Mt | 1.1% Cu, 3.1 g/t Ag | 253 Mlb Cu, 1.0 Moz Ag |
| Measured & Indicated (UCBS) | 10.2 Mt | 1.1% Cu, 3.1 g/t Ag | 255 Mlb Cu, 1.0 Moz Ag |
| Inferred (Satellite LCBS) | 49.7 Mt | 1.1% Cu, 2.5 g/t Ag | 1,210 Mlb Cu, 3.9 Moz Ag |
| Inferred (Satellite UCBS) | 27.1 Mt | 1.1% Cu, 5.7 g/t Ag | 630 Mlb Cu, 5.0 Moz Ag |
Our Analysis
- IRR after-tax
- 17.6%
higher than 30% of 43 projects we track
- NPV after-tax
- $168M
higher than 18% of 50 projects we track
- Initial capex
- $391M
233% of NPV
costlier than 23% of 53 projects we track
- Payback
- 3.5yrs
slower than 39% of 41 projects we track
- Mine life
- 11yrs
- Discount rate
- 8%
- Study price assumption
- Base case US$4.00/lb Cu (also $5.00/lb and $6.00/lb cases); silver $25/oz in resource/reserve estimates; CAD/USD 0.80
- Spot copper today
- $6.66/lb
A US$391M build against an US$84M market capitalisation is the fact that governs everything else here. The Upper Peninsula feasibility study describes a mine that costs several times the entire value of the company that would have to build it. No micro-cap writes that cheque from its own balance sheet. The realistic paths are a heavily dilutive equity raise, a partner or streaming arrangement that gives away a large share of the economics, or a sale of the asset or the company to someone with a balance sheet. Each of those transfers value away from today's holder, and a fully permitted position does not change the arithmetic of who funds it.
The returns are adequate rather than exceptional. A 17.6% after-tax IRR sits in the lower half of the 43 copper projects we track, ahead of only about 30% of them, and against the roughly 20% that a junior with a single asset should be clearing to attract project finance, it leaves little margin. The US$168M after-tax NPV ranks ahead of just 18% of the 50 copper projects we track, and a 3.5-year payback is middling. This is a feasibility study, so the estimate carries a tighter band than a PEA and deserves to be taken at face value, which makes the modest ranking harder to argue away rather than easier.
The price deck is where the upside sits. The base case assumes US$4.00/lb copper, with US$5.00 and US$6.00 cases alongside, while spot is US$6.66/lb. At that level the returns would look materially different, and the gap between study and market is the main reason the NPV stands well above the market cap. The market may simply not have priced the asset, or it may be discounting exactly the funding and dilution problem above. The question that decides this investment is not the IRR at US$4.00 copper but whether a credible funder can be brought in without handing them most of the project.
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.
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