TNR Gold NSR Royalty Update - Los Azules Feasibility Study Confirms Economically Robust Copper Project With Leading ESG Performance
Executive Summary
- McEwen Copper announced positive results of an independent Feasibility Study for the Los Azules project, showing a post‑tax NPV (8%) of $2.9 B, IRR of 19.8%, and payback of 3.9 years.
- The study confirms a long‑life, low‑cost producer with average copper cathode output of 204,800 t/yr in years 1‑5 (≈451 M lb/yr) and 148,200 t/yr over the 21‑year mine life.
- Key de‑risking milestones: environmental permit approved (Dec 2024), acceptance into Argentina’s RIGI incentive regime (Sept 2025), and a strategic collaboration agreement with IFC for potential debt financing.
Key Details
- Economic Highlights (post‑tax):
- NPV(8%) = $2.94 B
- IRR = 19.8%
- Payback period = 3.87 years
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Initial capital cost = $3.17 B (incl. $1.6 B LOM capital intensity)
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Production & Reserves:
- Proven & Probable reserves: 10.2 B lb Cu (1.02 B t @ 0.45% Cu)
- Measured & Indicated resources: 5.4 B lb Cu (0.97 B t @ 0.26% Cu)
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Inferred resources: 20.0 B lb Cu (4.24 B t @ 0.21% Cu)
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Cost Structure:
- C1 cash cost = $1.71/lb Cu
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AISC = $2.11/lb Cu
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Processing Technology: Heap leach + SX/EW producing 99.99 % copper cathodes; no tailings dam, 74 % lower water use and 72 % lower mine‑to‑metal carbon intensity vs industry average.
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Sustainability Targets:
- 100 % renewable power (wind, hydro, solar) – goal of carbon‑neutral operation by 2038.
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GHG emissions: 1,082 kg CO₂‑e/t Cu (Scope 1&2), well below industry average.
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Regulatory & Incentive Status:
- Environmental Impact Assessment approved Dec 3 2024.
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Accepted into Argentina’s Large Investment Incentive Regime (RIGI) Sept 26 2025 – tax, customs and foreign‑exchange stability for 30 years; reduced corporate tax to 25 %, dividend withholding tax cut 50 %.
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Financing & Partnerships:
- Collaboration agreement with IFC to align ESG standards and potential lead financing.
- Preliminary equipment/infrastructure financing proposals > $1.1 B from Tier‑1 OEMs (Komatsu, Sandvik) and European export credit agencies.
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Strategic equity partners: Nuton® (Rio Tinto venture – 17.2 % stake), Stellantis (18.3 % stake) with copper cathode purchase rights.
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Future Growth Opportunities:
- Nuton® leaching technology could extend mine life by 30+ years and increase recoveries to > 85 % on primary sulfides.
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Four nearby porphyry targets (Tango, Porfido Norte, Franca, Mercedes) slated for exploration Q4 2025 – potential resource expansion.
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Development Timeline:
- FS NI 43‑101 Technical Report filing within 45 days (early Nov 2025).
- Construction start targeted 2026; SX/EW plant startup 2029; first copper cathode production 2030.
Notable Quotes
- “The Los Azules Feasibility Study is more than a technical milestone – it’s a blueprint for the future of copper mining.” – Rob McEwen, Chairman & Chief Owner, McEwen Inc.
- “We are confident that we have the right plan, the right team, and the right partnerships to develop Los Azules into Argentina’s first regenerative copper mine.” – Michael Meding, VP & GM, McEwen Copper.
Materiality Assessment: Material – Positive (large NPV/IRR, significant capital commitment, strategic ESG positioning, and imminent financing/development milestones).