Meridian Mining's Definitive Feasibility Study for Cabacal Delivers After-Tax NPV5 of USD 2.09 Billion, 108% IRR, and 0.9 Year Payback

Meridian Mining PLC (MNO) has released the Definitive Feasibility Study (DFS) for its Cabaçal gold-copper-silver project in Mato Grosso, Brazil. Prepared by Ausenco with support from GE21, SGS Lakefield, and Flowsheets, the study supersedes the March 2025 Preliminary Feasibility Study (PFS).

The DFS outlines robust economics under two scenarios. Under the Base Case, assuming gold at $3,570/oz, copper at $5.03/lb, and silver at $50.17/oz, the project yields an after-tax NPV5 of USD 2.092 billion, an internal rate of return (IRR) of 107.6%, and a payback period of 0.9 years, resulting in an NPV5 to capital expenditure ratio of 6.5x. Under a Spot Case dated 10 September 2026, with gold at $4,394/oz, copper at $6.53/lb, and silver at $64.14/oz, the after-tax NPV5 rises to USD 2.902 billion, the IRR reaches 134.7%, and the payback period shortens to 0.7 years, with an NPV5/Capex ratio of 9.0x.

Over the 13.9-year mine life, the project is expected to generate USD 5.4 billion in revenue and USD 2.9 billion in after-tax free cash flow. The Spot Case projects USD 6.7 billion in revenue and USD 4.0 billion in free cash flow. Production targets include 983,537 ounces of gold, 180,634 tonnes of copper, and 1,779,720 ounces of silver from 56.04 million tonnes of plant feed. Average annual AuEq production is 112.9 koz over the life of mine, with years 1–5 averaging 183,526 AuEq oz at an all-in sustaining cost (AISC) of USD 715/oz and average annual after-tax free cash flow of USD 413.8M.

Operating costs are projected at a LOM AISC of USD 1,056/oz AuEq, comprising total cash costs of USD 982.9/oz and sustaining capital of USD 49.3/oz. Recovery rates are estimated at 89.3% for gold, 92.8% for copper, and 74.3% for silver, improvements over the PFS figures of 87.1%, 92.3%, and 60.5% respectively.

Capital expenditure is estimated at an initial USD 322M, inclusive of a 10% contingency, tax credits, and pre-investment for a 4.5 Mtpa expansion from Year 4. Additional costs include USD 56M for expansion, USD 74M for sustaining capital, and USD 59M for closure, offset by a USD 23M salvage credit.

The reserve estimate, effective 31 December 2025, comprises 56.04 million tonnes grading 0.61 g/t Au, 0.35% Cu, and 1.33 g/t Ag, containing 1,106.5 koz of gold and 429.9 million pounds of copper. The resource estimate stands at 70.10 million tonnes grading 0.56 g/t Au, 0.33% Cu, and 1.31 g/t Ag, with a strip ratio of 1.42.

The mine plan involves 10 years of open-pit mining followed by stockpile reclaim to extend processing to 14 years. Throughput will ramp from 1.93 Mtpa in Year 1 to 2.5 Mtpa in Years 2–3, and 4.5 Mtpa from Year 4 onwards, utilizing dry-stack tailings. Fiscal terms include a 25% corporate tax and 9% social tax, mitigated by a 75% SUDAM tax reduction for 10 years. Royalties are set at 1.5% for gold, 2.0% for copper, and 2.0% for silver.

Regarding permitting, a Preliminary Licence was granted in October 2025, and an Installation Licence was lodged in May 2026 and is under review by SEMA. An Installation Licence for a 138 kV power line has been granted, and committed capital contracts total USD 15.9M. The DFS notes that the Preliminary Licence footprint is aligned with PEA/PFS volumes; increasing mined volumes would require amending the licence and extending the timeline, so the DFS reserves remain within the PFS pit shell.

Meridian Mining PLC (MNO) has delivered its Definitive Feasibility Study (DFS) on schedule, aligning with management’s guidance for a Q4 2026 release. The study’s content materially exceeds the previous Pre-Feasibility Study (PFS) from March 2025, marking a significant economic milestone for the company.

Compared to the March 2025 PFS, the DFS presents the following updated economic metrics:

• NPV5: USD 984M → USD 2,092M (base)
• IRR: 61.2% → 107.6%
• Mine life: 10.6 → 13.9 years
• Recoveries improved across all three metals

The substantial increase in net present value is primarily driven by higher commodity price assumptions rather than operational improvements. The PFS base case utilized gold at $2,119/oz and copper at $4.16/lb, whereas the DFS base case assumes gold at $3,570/oz and copper at $5.03/lb, representing increases of approximately 68% and 21%, respectively. The company’s own spot case, which employs even higher prices, projects an NPV5 of USD 2.9B, further highlighting the project's sensitivity to price fluctuations.

Operational costs have also risen. Capital expenditure increased by approximately 30%, from USD 248M to USD 322M, a figure attributed to Brazil cost inflation, Brazilian real appreciation (from 5.99 to 5.40), and project redesign and de-risking efforts. Consequently, All-In Sustaining Costs (AISC) rose by approximately 42%, from USD 742/oz to USD 1,056/oz AuEq, driven by higher energy and reagent costs, inflation, and a stronger BRL.

Reserve grades have declined across the board. Gold grade fell from 0.63 to 0.61 g/t, copper from 0.44% to 0.35%, and silver from 1.64 to 1.33 g/t. The larger reserve tonnage is therefore lower grade. Additionally, the current license caps the mineable footprint to the volumes established in the PFS and Preliminary Economic Assessment (PEA). This means the larger DFS resource cannot be fully mined without a license amendment and a longer timeline.

Meridian Mining PLC is a pre-revenue development company advancing the Cabaçal gold-copper-silver VMS project in Mato Grosso, Brazil, alongside a wider 50 km belt-scale corridor that includes the Santa Helena Central, Cigarra, Sucuri, Álamo, Chiquito, and the Jauru/Araputanga greenstone-belt and Espigão targets. The flagship Cabaçal asset is a volcanogenic massive sulphide system utilizing a conventional open-pit, mill, and flotation flowsheet to produce a clean, high-grade copper concentrate with gold and silver payables.

The project is in advanced development, having completed a DFS with the Final Investment Decision (FID) as the next gating milestone. A Preliminary Licence has been granted and an Installation Licence lodged, while long-lead equipment including a SAG mill, transformer, and re-grind mill has been ordered. Meridian has structured a purchase agreement to acquire 100% of Cabaçal for USD 8.75M plus 4.5M shares. Phases 1 through 5 of this agreement are complete, with Phase 6 payment pending 30 days post-grant of Installation Permits. The DFS model inputs include a gold royalty of 1.5%, a copper royalty of 2.0%, and a silver royalty of 2.0%.