Ivanhoe Electric (US:IE)2025-06-27 09:27Project Highlights - The Santa Cruz Copper Project has a low initial capital expenditure of $1.24 billion and low unit production costs of $1.32 per pound of copper[30] - The project anticipates a 23-year mine life with a 20,000 tonnes per day operation and conventional heap leach process achieving 92% copper recoveries[30] - During the first 15 years, the project expects to produce 72,000 tonnes of copper cathode per year with an average annual copper grade of 1.1%[30] - At the current COMEX copper price, the project boasts an after-tax Net Present Value (NPV) at an 8% discount rate of $1.9 billion and a 24% Internal Rate of Return (IRR)[30] Financial Metrics - At a copper price of $4.25 per pound, the after-tax NPV8% is $1.4 billion with a 20% IRR[30] - The project anticipates a life of mine revenue of $13.1 billion and after-tax free cash flow of $5.0 billion[31] - The capital intensity is projected at $17100 per tonne[31] Resources and Reserves - The project's probable reserves are estimated at 136 million tonnes with a total copper grade of 1.08%[45] - Indicated resources inclusive of mineral reserves for Santa Cruz and East Ridge contain 3.1 million tonnes of copper[62] - Inferred resources for Santa Cruz and East Ridge contain 0.6 million tonnes of copper[64] Operational Aspects - The surface infrastructure requires approximately 2,600 acres, which is 40% of the total land package[41] - The mine will access the top of mineral reserves at 310 meters beneath the surface via twin decline drifts measuring approximately 8 kilometers[50] - The study incorporates over 200 kilometers of longhole stoping and local drift-and-fill across 16 levels[50]