Coffee with Samso Episode 132 is with Barry Cahill, Executive Director of Cyprium Metals Ltd (ASX:CYM).
The time has come for Cyprium Metals to lay out the theme for the Nifty Story. The release of the Restart Study is, effectively, the beginning of what is about to come as the company progresses down the path of mining and delivery copper plates.
In this episode of Coffee with Samso Barry shares with us how the Cyprium business will take shape in the coming 18 months. The company is planning to be in production in 2023 and this is effectively shaped by this study.
Barry shares with us how the story will unveil itself with all the approval stages being met and in the process of being submitted. The process of extracting the copper is not an arduous process, and funding at this stage for the start should not be an issue.
On the 11th March, the company announced the following:
Nifty Copper Project Restart Study
HIGHLIGHTS
- Current copper price ~USD4.60/lb
- Oxide C1 costs of USD1.91/lb and C3 costs of USD2.82/lb
- Average production of 25,000 tpa copper cathode
- Oxide cathode production 146,100 tonnes copper metal
- Pre-production capital AUD149M
- Positive engagement with Financiers now accessing final study and extensive data room
- NPV @7% of AUD277M with an IRR of 37% (post tax)
- Mineral Resource Estimate (MRE) to include 2021 drilling & inferred resource conversion
- Oxide mine life 2023-29 at ~6.3 years (pre-MRE upgrade) with sulphide potential +20yrs
- Metallurgical testwork confirms 85% recovery in Retreat and 90% in Oxide Pit material
- Free cashflow AUD544M
- Payback in 3 years
- Regulatory approvals submitted and on track
- Sulphide heap leach metallurgy testwork commenced
NEXT STEPS
- Finalise the Financing of the project during Q2 2022
- Update the Mineral Resource and in pit inventory, including expansion options
- Complete financing and final government approvals post FID
- Commence refurbishment and construction post finance and government approvals
- Plate copper metal in the second half of 2023
Chapters
00:00 Start
00:15 Introduction
00:58 Barry and the mineral resource.
03:45 The Copper price margin.
05:06 Potential future mine life.
07:18 The Nifty West Drilling
08:50 The Pit Shells
10:48 The Nifty Processing Story
16:25 How big can the Nifty resources get?
18:10 What could derail the Nifty Story?
22:00 How does the Nifty Story compare to others in the market?
25:58 Any Environmental Issues?
29:07 Why is Cyprium so cheap?
31:53 History repeats itself.
32:44 What are shareholders and potential investors look at in Cyprium?
35:50 Who are your peers?
36:48 The other projects? The Total Strategy.
41:05 The plan going ahead.
44:55 No short cuts in mining.
45:25 The case of Risk Reduction.
46:28 Conclusion.
PODCAST
About Barry Cahill
Executive Director
Mr. Cahill is a mining engineer with over 30 years’ experience in exploration, operational mining and management. In particular, his experience covers management of project development and construction from exploration drilling through project funding, commissioning and development. He was the Managing Director of Finders Resources Limited from 2013 until its takeover in 2018. Mr. Cahill has previously been Executive Director of a number of public companies including Operations Director at Perilya Limited and Managing Director of Australian Mines Limited and Norseman Gold Plc.
About Cyprium Metals Limited (Cyprium Metals Ltd (ASX:CYM))
Cyprium Metals Limited (ASX: CYM) is an ASX listed company headquartered in Perth, WA, that is poised to grow to a mid-tier mining business and manage a portfolio of Australian copper projects to deliver vital commodities, strong shareholder returns and sustainable value for our stakeholders.
Cyprium has projects with mineral resources of 200,000 tonnes of copper (Hollandaire 51.5kt JORC 2012 and Nanadie Well 151.5kt JORC 2004) and 100,000 ounces of gold (Hollandaire 28.8koz JORC 2012 and Nanadie Well 74.2koz JORC 2004) in the Murchison region, an established Western Australian mining jurisdiction, which includes the Cue Copper Project and the nearby Nanadie Well Copper-Gold Project.
Cyprium has a highly credentialed executive management team in place with a meaningful equity investment, to target projects that have a copper mineral resource, with sulphide mineralisation and high sulphide content, together with excellent potential to increase the size of the mineral resource.
The development of the projects will be optimised using low-cost sulphide heap leach, which is ideal for stranded projects, problematic mineralogy, lack of scale and/or challenging locations. Innovative processing solutions will be used with the aim of producing final metal product on site to maximise value.
Cyprium pursues their strategy with all of their stakeholders, which includes employees, global markets, suppliers, shareholders, communities and government, that is based on integrity, co-operation, transparency and mutual value creation.
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