Yandera Copper Project PFS: $1.04B NPV, 23.5% IRR
Freeport Resources Inc.'s Yandera Copper Project in Papua New Guinea (95 km SW of Madang, Madang Province) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $1.04B, an after-tax IRR of 23.5%, and initial capital of $930M. The mine plan runs 20 years at about 100000 t Cu per year.
Freeport Resources Inc.'s Yandera Copper Project has reported Pre-Feasibility Study (PFS) results for the copper project in Papua New Guinea (95 km SW of Madang, Madang Province). The study headlines an after-tax net present value of $1.04B at a 10% discount rate. It reflects Freeport Resources Inc.'s (FRI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.04B using a 10% discount rate. After-tax IRR is 23.5%. Initial capital expenditure is estimated at $930M. The study models a payback period of 5.67 years. Economics are based on Cu $3.35/lb; Mo $10.00/lb; Au $1,400.00/oz (2017 PFS base case).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 100000 t Cu. Average head grade is 0.39% CuEq. The open-pit strip ratio is 1.36.
Resources and ownership. Mineral reserves: 540 Mt probable ore reserve (from 2017 PFS optimized pit shell). Mineral resources: Measured: 196,496 kt @ 0.46% CuEq; Indicated: 532,147 kt @ 0.36% CuEq; M&I: 728,643 kt @ 0.39% CuEq; Inferred: 230,643 kt @ 0.32% CuEq (0.15% CuEq cutoff, 2016 Resource Statement, SRK Consulting). The company holds a 100% interest in the project.
These figures are extracted from Freeport Resources Inc.'s technical disclosures and reflect the most recent PFS 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.