MOD Feasibility Study Confirms Robust Capital Intensity and 31%+ IRR; Maiden Ore Reserve
Executive Summary
- Marimaca Copper released a DFS for the Marimaca Oxide Deposit (MOD) projecting a 13‑year reserve life with a nominal 50 ktpa copper cathode production target.
- Pre‑production capital is estimated at US$587 million (≈US$11,700/tonne of capacity), positioning MOD among the lowest‑cost development‑stage copper projects globally.
- Economic highlights: post‑tax NPV₈ = US$709 M (pre‑tax US$900 M) and IRR = 31% (33% pre‑tax) at a long‑term copper price of US$4.30/lb; at the 3‑month COMEX average of US$5.05/lb, post‑tax NPV₈ rises to US$1.07 bn with IRR = 39%.
Key Details
- Production & Reserves
- Proven & probable reserves: 178.6 Mt at 0.42% Cu (≈750 kt contained copper).
- Steady‑state output (years 2‑10): ~49 ktpa (108 M lb) of Grade A LME copper cathode.
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First five years: 50 ktpa target; LOM average 43 ktpa.
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Cost Structure
- Pre‑production capital cost: US$587 M; capital intensity US$11,700/tonne Cu capacity.
- C1 cash costs: US$1.45/lb (first 5 yr), US$1.68/lb (years 2‑10), US$1.84/lb (LOM).
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AISC: US$1.97/lb (first 5 yr), US$2.12/lb (years 2‑10), US$2.29/lb (LOM).
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Operating Metrics
- Life‑of‑mine strip ratio: 0.8:1 (including pre‑stripped material).
- Heap leach copper recoveries: 78% (first five years) → 72% LOM.
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Total ore mined LOM: 178,635 kt; waste mined: 145,889 kt.
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Financial Projections
- Average annual EBITDA: US$326 M (years 2‑10).
- Post‑tax average unlevered free cash flow: US$222 M (first 5 yr).
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Payback period: 2.5 years.
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Financing & Liquidity
- Debt financing workstreams active; expressions of interest up to US$500 M.
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Cash on hand at end‑June 2025: > US$24 M, sufficient for early development activities.
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Permitting & Timeline
- Environmental approvals (RCA) expected by end‑2025; construction slated for 2026.
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Investor presentation scheduled for 26 Aug 2025 via IMC platform.
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Growth Opportunities
- Potential expansion to >70 ktpa copper cathode within five years through Pampa Medina and Madrugador oxide deposits.
- Ongoing sulphide exploration beneath MOD; recent drilling success noted.
Notable Quotes
“The DFS confirms the MOD’s position as one of the most attractive copper development opportunities globally… our competitive operating cost profile drives superior return on invested capital metrics at virtually any copper price.” – Hayden Locke, President & CEO
All technical and economic figures are taken directly from the company‑issued DFS press release.