NAIPU MINING(SZ:300818)2025-05-13 07:22Investment Overview - The initial investment for the Alacran copper-gold-silver mine project is estimated at $420.4 million, with an expected internal rate of return (IRR) of 23.8% and a payback period of 3 years [4] - The project is based on metal prices of $3.99 per pound for copper, $1,715 per ounce for gold, 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 $12,000 and $13,000, a payment of $8 million will be made; if it exceeds $13,000, the payment will be $28 million [6] Strategic Goals and Future Plans - The company aims to leverage its EPC capabilities and operational management expertise to generate revenue during the construction and operational phases of the mine [7] - The project is seen as a stepping stone into the mineral resource sector, with plans to explore additional projects after the successful establishment of the first one [11] Financial Considerations - The company has a cash reserve of ¥530 million, which is deemed sufficient for the project, with additional financing planned through project financing methods [10] - The first payment of $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]