Lundin Mining (TSX: LUN) reported a $9.5 billion after-tax NPV8% for the Vicuña integrated technical study, positioning the Filo del Sol plus Josemaria district as a multi-decade copper-gold-silver producer under a staged build plan.
On returns, the study cites a 14.8% after-tax IRR and 8.4-year after-tax payback. Average annual after-tax free cash flow is $2.2 billion per year during the first 25 full years, after expansionary capital.
At spot prices of $6.00 per copper pound, $5,000 per gold ounce, and $80 per silver ounce, the release says NPV8% rises to $28.8 billion, IRR to 25.5%, and payback shortens to 5.4 years.
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The PEA base case uses $4.60 per copper pound, $3,300 per gold ounce, and $40 per silver ounce, and outlines average annual output of 400,000 copper tonnes, 700,000 gold ounces, and 22 million silver ounces across the first 25 full years.
Peak scale is tied to the mid-life production window, with a 10-year average of 508 ktpa copper, 801,000 gold ounces, and 20.2 million silver ounces, supported by a concentrator ramp from 175,000 tpd (64.0 Mtpa) in Stage 1 to 293,000 tpd (107.0 Mtpa) after Stage 3 expansion.
The mine plan is framed as “initial +70-year” life of mine, producing 22.3 million copper tonnes, 37.2 million gold ounces, and 763 million silver ounces, with revenue mix estimated at 60% copper, 32% gold, and 8% silver over life-of-mine.
The first 25 years show an average cash cost of negative $0.20 per copper pound and AISC of $0.47 per pound. Life-of-mine, cash cost is at $0.74 per pound and AISC at $1.38 per pound.
Stage 1 initial capital is $7.1 billion, with the total for Stages 1–3 at $18.1 billion, and life-of-mine sustaining capital estimated at $30.3 billion over 70 years including closure.
The release estimates macro contributions in Argentina at about $965.0 million annually and $69.0 billion over life-of-mine in taxes and royalties, and construction employment averaging 5,500 direct and 19,000 indirect workers.
Lundin Mining last traded at $34.80 on the TSX.
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