McEwen Copper, a subsidiary of McEwen Inc (TSX: MUX) released a feasibility study for its Los Azules copper project that delivers an after-tax NPV8% of $2.94 billion, an IRR of 19.8%, and a 3.87-year payback at a modeled copper price of $4.35 per pound.
The plan outlines a 21-year operation averaging 204,800 tonnes of copper per year in the first five years and 148,200 tonnes per year over the life of mine, for a total of 3.279 million tonnes of cathode. The reserve underpinning the study stands at 1.023 billion tonnes grading 0.453% Cu (10.217 billion pounds contained copper), mined at an overall strip ratio of 1.65:1 across 12 pit phases.
On the cost side, the study lists a C1 cash cost of $1.71 per pound and AISC of $2.11 per pound. Before tax, the economics improve to $4.28 billion NPV8% and 24.3% IRR. After tax, cumulative cash flow is $9.65 billion (pre-tax $12.72 billion).
Initial capital is $3.168 billion for mining, crushing/handling, heap leach pads, SX/EW, an acid plant, camp and site utilities. Capital intensity screens at roughly $20,200 per tonne of annual capacity on initial capex versus average annual output, or $1,600 per tonne when measured on total life-of-mine capital against total production.
A notable feature of the financing plan is that the $440 million high-voltage transmission build is to be constructed and funded by YPF Luz under a long-term renewable power agreement and is excluded from initial capex. The company says it has preliminary proposals exceeding $1.1 billion from Tier-1 OEMs and European export credit agencies that could cover a large share of major equipment and local installation.
A collaboration agreement with IFC is intended to align the project with IFC’s ESG standards and position IFC as a potential lead lender. Strategic holders include Stellantis at 18.3% and Nuton, a Rio Tinto venture, at 17.2%.
The Environmental Impact Assessment for construction and operations was approved in 2024, and the project was accepted into Argentina’s Large Investment Incentive Regime in September 2025. Management highlights RIGI’s 30-year stability on tax, customs, and foreign-exchange rules, including a corporate income tax rate of 25% (versus 35% general rate), VAT relief during construction, accelerated depreciation, no export tax, streamlined customs, and the ability to retain export proceeds offshore for debt service.
The after-tax IRR stays above 15% down to $3.74 per pound copper, with the NPV8% breaking even at $3.10 per pound. At the upside copper price of $5.22 per pound, the study indicates $4.97 billion after-tax NPV8% and a 26% IRR.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
