Investment Overview - The initial investment for the Alacran copper-gold-silver mine project is estimated at 420.4million∗∗,withanexpectedinternalrateofreturn(IRR)of∗∗23.83.99 per pound for copper, 1,715perounceforgold∗∗,and∗∗22.19 per ounce for silver, with current prices having increased by approximately 8%, 90%, and 45% respectively [4] Project Background and Progress - The project is held by Cordoba Mining, with a 20% equity investment from Jin Chengxin in 2019, and a subsequent 50% stake acquired in 2022 [4] - The project has completed feasibility design and submitted the Environmental Impact Assessment (EIA) for approval, with expectations to enter the construction phase in 2027 and commence production in 2028 [5] Resource Potential and Financial Mechanisms - The project covers a mining area of 146 square kilometers, with an additional 800 square kilometers under application [6] - A compensation mechanism is in place: if the average daily trading price of copper on the London Metal Exchange (LME) reaches between 12,000and13,000, a payment of 8million∗∗willbemade;ifitexceeds∗∗13,000, the payment will be 28million∗∗[6]StrategicGoalsandFuturePlans−ThecompanyaimstoleverageitsEPCcapabilitiesandoperationalmanagementexpertisetogeneraterevenueduringtheconstructionandoperationalphasesofthemine[7]−Theprojectisseenasasteppingstoneintothemineralresourcesector,withplanstoexploreadditionalprojectsafterthesuccessfulestablishmentofthefirstone[11]FinancialConsiderations−Thecompanyhasacashreserveof∗∗¥530million∗∗,whichisdeemedsufficientfortheproject,withadditionalfinancingplannedthroughprojectfinancingmethods[10]−Thefirstpaymentof∗∗39.6 million is due upon contract signing, with a remaining payment of $5.4 million to be made three years after commercial production begins [10]
NAIPU MINING(300818)2025-05-13 07:22