Centaurus Metals (CTM) 2025 Conference Transcript

Summary of Centaurus Metals Conference Call Company Overview - Company: Centaurus Metals - Project: Jaguar Nickel Sulfide Project - Location: Brazil Key Points and Arguments Project Progress and Feasibility - Significant progress has been made on the Jaguar nickel sulfide project over the past twelve months, with plans for an investment decision by the end of Q1 next year [3][26] - The project has a resource of 138 million tonnes of nickel, containing approximately 1.2 million tonnes of nickel metal, with reserves of around 400,000 tonnes [4][18] - The project is expected to have a fifteen-year life based on current open-pit reserves [4] Economic Viability - The project is highly economic, with an NPV exceeding AUD 1 billion and an IRR above 30% [10] - Operating costs are projected at $4.43 per pound, positioning the project competitively against other nickel sources, particularly from Indonesia [12][23] - The project is expected to generate free cash flows of approximately USD 170 million annually at long-term nickel prices, with current spot prices yielding around USD 100 million [23] Strategic Partnerships and Funding - Centaurus is actively seeking a minority project partner to secure funding and ensure competitiveness throughout the nickel cycle [5][6] - The company is in discussions with various groups for long-term offtake agreements, highlighting a disconnect between strategic needs for nickel supply and equity market perceptions [6] Environmental and Regulatory Approvals - All necessary environmental licenses have been obtained, including a preliminary license and an installation license, allowing for project construction [7][8][24] - The project benefits from a low carbon footprint due to Brazil's reliance on hydroelectric power, which is attractive to potential partners [8][14] Production Profile - The production profile is expected to start at approximately 22,500 tonnes of nickel annually for the first seven years, tapering to around 16,000-17,000 tonnes in subsequent years [10][22] - There is potential for additional underground mineralization that could enhance production in the future [19] Infrastructure and Location Advantages - The project is located in the Carajas mineral province, a well-established mining region with significant infrastructure, including roads and power lines [15][28] - Proximity to Vale's operations and other mining projects enhances logistical advantages for Centaurus [15][16] Future Outlook - An investment decision is anticipated by March or April next year, with a projected two-year build time leading to production around 2028 [26][27] - The company expects a significant re-rating of its market cap once funding is secured and production begins [28] Additional Important Information - The project is positioned as a Tier one scale asset in a prolific mineral province, with strong cash flow generation potential once operational [28] - The Brazilian government has enhanced support for critical mineral projects, improving the funding landscape for such initiatives [14]