Shares in Celsius Resources Ltd (ASX:CLA, AIM:CLA, FRA:FX8) shot up 15.5% to 1.04p as funding and offtake discussions were given a boost with stronger economic outcomes reported for its flagship copper-gold project in the Philippines following completion of a definitive feasibility study (DFS).
The study calculated that the Maalinao-Caigutan-Biyog (MCB) project, in which Celsius holds a 40% working interest, has a post-tax net present value (at an 8% discount rate) of US$771 million and an internal rate of return of 24%, based on conservative copper and gold pricing assumptions.
At current spot prices, the post-tax NPV increases to US$1.2 billion with a 34% IRR.
A 35-year mine life will be underpinned by a JORC-compliant mineral resource of 343 million tonnes (Mt) and a maiden ore reserve of 130.2 Mt.
Celsius executive director Neil Grimes said: "The study demonstrates a technically robust and economically enhanced project, with competitive capital intensity and operating costs."
He added: "The company is progressing funding and offtake discussions to advance the project toward a final investment decision and construction."
Early production will focus on a high-grade core, the company said, supporting strong cash flow and average annual EBITDA of US$230 million during the first decade. The project will use sub-level open stoping with paste backfill, transitioning to a shaft and hoisting system.
Initial capital expenditure is estimated at US$276 million, with a payback period of 4.7 years.
Patrique Jane Duran, chief operations officer of Makilala Mining Company, Celsius' Philippine affiliate company, said the DFS "provides a solid foundation for funding execution, and long-term value creation".
She said the study demonstrates "a competitive cost structure, strong margins, and early cash flow, from the substantial ore reserve and a disciplined, risk-managed development strategy".
"Project optimisation prioritises operational efficiency and delivery certainty in the early years, while reducing the overall environmental footprint and preserving flexibility as infrastructure is established and the operation matures, thereby supporting both cost performance and environmental outcomes."