Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX, NYSE: HBM) today announced the
results of its preliminary economic assessment (“PEA”) of its
100%-owned Mason copper project located in Nevada, United States.
All dollar amounts are in US dollars, unless otherwise noted.
“The Mason PEA demonstrates the success of
Hudbay’s consistent growth strategy and our team’s ability to
create value from accretive acquisitions of high-quality copper
projects in mining-friendly jurisdictions,” said Peter Kukielski,
Hudbay’s President and Chief Executive Officer. “We added Mason to
our development pipeline portfolio in 2018 and have since leveraged
our integrated core competencies of exploration, mine planning and
project development to demonstrate that Mason is a quality
long-term development project in our robust organic growth
pipeline.”
Hudbay’s Mason Development
Strategy
The Mason project is a large greenfield copper
deposit located in the historic Yerington District of Nevada and is
one of the largest undeveloped copper porphyry deposits in North
America. Mason’s measured and indicated mineral resource estimates
are approximately twice the size of Hudbay’s Constancia and
Rosemont deposits. Hudbay views the Mason project as a long-term
option for future development and a strong component of its
pipeline of long-term growth opportunities in mining friendly
jurisdictions. Please refer to Figure 1 for a map showing the
location of the Mason project.
In 2017, Hudbay made a $2 million toe-hold
equity investment in Mason Resources Corp., the entity that owned
the Mason project at that time. In October 2018, Hudbay entered
into an agreement to acquire the remaining 86% of the issued and
outstanding common shares of Mason Resources Corp. that it didn’t
already own for approximately $15 million. The acquisition of Mason
was completed by way of a plan of arrangement in December 2018.
Since acquiring Mason, Hudbay has consolidated a prospective
package of patented and unpatented mining claims contiguous to the
Mason project in two private transactions in 2019 and 2020,
including a property called Mason Valley, as shown in Figure 2. In
March 2021, Hudbay announced an updated measured and indicated
resource estimate of 2.2 billion tonnes at 0.29% copper at Mason,
based on a revised resource model and an updated mine plan
constructed by Hudbay personnel using the same methods applied at
Constancia. The company has also advanced a number of technical
studies to support the completion of its 2021 PEA.
Mason 2021 PEA Summary
The 2021 Mason PEA contemplates a 27-year mine
life with average annual copper production of approximately 140,000
tonnes over the first ten years of full production. At a copper
price of $3.10 per pound, the after-tax net present value using a
10% discount rate is $519 million and the internal rate of return
is 13.7%. The valuation metrics are highly sensitive to the copper
price and at a price of $3.25 per pound, the after-tax net present
value using a 10% discount rate increases to $773 million and the
internal rate of return increases to 15.4%.
A summary of key valuation, production and cost
details from the 2021 PEA can be found below. For further details,
including metrics provided on an annual basis, please refer to the
section titled “Detailed Cash Flow Model” at the end of this news
release.
Summary of Key Metrics (at $3.10/lb Cu) |
Unit |
Value |
Valuation Metrics
(Unlevered)1 |
|
|
Net present value @ 8% (after-tax) |
$ millions |
$945 |
Net present value @ 10% (after-tax) |
$ millions |
$519 |
Internal rate of return (after-tax) |
% |
13.7% |
Payback period |
# years |
9.0 |
EBITDA (annual LOM avg.) |
$ millions |
$339 |
Project Metrics |
|
|
Initial capital2 |
$ millions |
$2,079 |
Operating Metrics |
|
|
Copper production (annual avg. over first 10 full years) |
000 tonnes |
138.7 |
Copper production (annual LOM avg.) |
000 tonnes |
112.3 |
Copper recovery |
% |
90.0% |
Sustaining capital (annual LOM avg.) |
$ millions |
$21 |
Cash cost3 (LOM avg.) |
$/lb Cu |
$1.61 |
Sustaining cash cost3 (LOM avg.) |
$/lb Cu |
$1.76 |
Mining unit cost4 (LOM avg.) |
$/t moved |
$1.20 |
Milling unit cost (LOM avg.) |
$/t milled |
$4.85 |
G&A unit cost (LOM avg.) |
$/t milled |
$1.15 |
Combined unit cost5 (LOM avg.) |
$/t milled |
$8.66 |
Note: “LOM” refers to life-of-mine total.1
Calculated assuming the following commodity prices: copper price of
$3.10 per pound, gold price of $1,500 per ounce, silver price of
$18.00 per ounce and molybdenum price of $10.00 per pound.2 Initial
capital assumes a 20% contingency.3 Cash cost and sustaining cash
cost, net of by-product credits, per pound of copper produced.
By-product credits calculated using the following commodity prices:
gold price of $1,500 per ounce, silver price of $18.00 per ounce
and molybdenum price of $10.00 per pound. Sustaining cash cost
includes sustaining capital expenditures and royalties. Cash cost
and sustaining cash cost are non-IFRS financial performance
measures with no standardized definition under IFRS. For further
details on why Hudbay believes cash costs are a useful performance
indicator, please refer to the company's most recent Management's
Discussion and Analysis for the three and twelve months ended
December 31, 2020.4 Before the impact of capitalized stripping.5
Combined mine, mill and general and administrative costs per tonne
of ore milled, after the impact of capitalized stripping.
Cu Price Sensitivity |
Unit |
$3.00/lb |
$3.10/lb |
$3.25/lb |
$3.50/lb |
$3.75/lb |
$4.00/lb |
Valuation Metrics |
|
|
|
|
|
|
|
Net present value1 @ 8% |
$ millions |
$739 |
$945 |
$1,253 |
$1,761 |
$2,264 |
$2,766 |
Net present value1 @ 10% |
$ millions |
$350 |
$519 |
$773 |
$1,191 |
$1,606 |
$2,019 |
Internal rate of return1 |
% |
12.5% |
13.7 % |
15.4% |
18.1% |
20.7% |
23.1% |
Payback period |
# years |
9.5 |
9.0 |
8.4 |
7.7 |
7.1 |
6.7 |
EBITDA (annual LOM avg.) |
$ millions |
$315 |
$339 |
$374 |
$434 |
$493 |
$553 |
1 Net present value and internal rate of return
are shown on an after-tax basis.
Overview of Proposed
Operation
The Mason deposit is a large tonnage,
copper-molybdenum deposit and is planned to be a traditional open
pit shovel/truck operation with a copper sulphide mineral
processing plant producing commercial grade copper and molybdenum
concentrate. The plant is designed to operate at a throughput rate
of 120,000 tonnes per day. Please refer to Figure 3 for a map of
the proposed site layout.
Mining operations in the pit are designed to be
performed from 15 and 30-metre-high benches using large-scale
mining equipment including 10 5/8-inch diameter rotary blast hole
drills, 74 cubic-yard electric mining shovels, a 55 cubic-yard
hydraulic shovel, a 37 cubic-yard front-end loader and 290-tonne
capacity haul trucks. During the 27-year operation, the mine plan
achieves peak mining rates until year 13, then reduces by about
half of the original mining rate from year 14 to 20 as the strip
ratio drops. The remaining seven years assumes the processing of
rehandled ore from stockpiles.
The concentrator design consists of conventional
crushing and milling, followed by rougher and cleaner froth
flotation, and is a similar flowsheet to that used at Hudbay’s
Constancia mine in Peru. The proposed site layout assumes the plant
will be located to the northwest of the open pit, northeast of the
waste rock facility and east of the tailings management facility.
Haul trucks will dump ore at the primary crusher, which will feed
the concentrator via overland conveyor.
Operating costs were developed by Hudbay based
on a bottom-up approach utilizing price quotes from suppliers and
local costs for labour. Mine operating costs were validated against
actual costs at Constancia and other similar projects and
operations.
Mineral Resource Estimate
The PEA and mine plan were based on a revised
resource model which was used to publish Hudbay’s first compiled
updated resource estimate for Mason. The resource model was
constructed using the same methods Hudbay applied at Constancia.
Based on this new model, including resource classification criteria
calibrated on historical performance at Constancia, control of
grade over-smoothing in the central zone of the deposit and the use
of a lower cut-off grade, the measured and indicated resources
increased to 2.2 billion tonnes at 0.29% copper, from 1.4 billion
tonnes at 0.32% copper previously.
The current mineral resource estimates for
Mason, based on the revised resource model as of January 1,
2021, are summarized below.
Mason ProjectMineral Resource
Estimates1,2,3 |
Tonnes |
Cu Grade(%) |
Mo Grade(g/t) |
Au Grade(g/t) |
Ag Grade(g/t) |
Measured |
|
1,417,000,000 |
0.29 |
59 |
0.031 |
0.66 |
Indicated |
|
801,000,000 |
0.30 |
80 |
0.025 |
0.57 |
Total Measured and Indicated |
|
2,219,000,000 |
0.29 |
67 |
0.029 |
0.63 |
Inferred |
|
237,000,000 |
0.24 |
78 |
0.033 |
0.73 |
Note: totals may not add up correctly due to rounding.1 Mineral
resource estimates that are not mineral reserves do not have
demonstrated economic viability. Mineral resource estimates do not
include factors for mining recovery or dilution.2 Metal prices of
$3.10 per pound copper, $10.00 per pound molybdenum, $1,500 per
ounce gold, and $18.00 per ounce silver were used to estimate
mineral resources.3 Mineral resource estimates are reported as 20
metres by 20 metres by 15 meters blocks above cut-off using a
minimum NSR per tonne of $6.25.
Regional Upside Potential
There is opportunity to further enhance the
project economics through exploration for higher grade satellite
deposits on Hudbay’s prospective land package in Nevada, including
Mason Valley. The Mason Valley property hosts several historical
underground copper mines that were in production in the early
1900s. Much of the Mason Valley property is located on Hudbay’s
wholly owned private lands and contains highly prospective skarn
mineralization. Mason Valley presents a similar opportunity to
Hudbay’s Copper World property in Arizona, where the company has
recently announced the discovery of four mineral deposits in a
historical mining district. Historical drilling and production
records from the past producing mines at Mason Valley indicate the
mineralization is high grade and starts at or near surface (please
refer to Figure 4). In 2015, Metal Bank Limited optioned the Mason
Valley property and conducted a limited campaign of nine reverse
circulation drillholes at the Bluestone prospect with the objective
to define the extent of the high-grade copper mineralization. Two
notable holes intersected 42 metres of 1.51% copper and 34 metres
of 0.61% copper, both starting from surface.
The company also owns the Blue Hill copper oxide
deposit located 1.5 kilometres northwest of the Mason deposit,
which was not included in the 2021 PEA and may present an
opportunity to add an oxide component to the Mason project design
in the future.
Next Steps
Hudbay continues to compile and interpret
historical data relating to its land package near Mason. Once this
is done, the company expects to complete a geophysical survey to
refine the exploration targets in preparation for a potential
initial drilling campaign later this year. The company will also
continue to advance its local stakeholder engagement program while
advancing trade-off studies to support future pre-feasibility work
on the project.
Non-IFRS Financial Performance Measures
Cash cost and sustaining cash cost per pound of
copper produced are shown because the company believes they help
investors and management assess the performance of its operations,
including the margin generated by the operations and the company.
Unit operating costs are shown because these measures are used by
the company as a key performance indicator to assess the
performance of its mining and processing operations. These measures
do not have a meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other issuers.
These measures should not be considered in isolation or as a
substitute for measures prepared in accordance with IFRS and are
not necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
these measures differently. For further details on these measures,
please refer to page 53 of Hudbay’s management’s discussion and
analysis for the year ended December 31, 2020 available on SEDAR at
www.sedar.com.
Qualified Person and NI
43-101
The scientific and technical information
contained in this news release related to the Mason project has
been approved by Olivier Tavchandjian, P. Geo, Hudbay’s
Vice-President, Exploration and Geology. Mr. Tavchandjian is a
qualified person pursuant to NI 43 101. The company expects to
voluntarily file a National Instrument 43-101 technical report on
Mason in the coming months.
This preliminary economic assessment is
preliminary in nature, includes inferred resources that are
considered too speculative to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves and there is no certainty the preliminary economic
assessment will be realized.
Note to United States
Investors
This news release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States
securities laws. Canadian reporting requirements for disclosure of
mineral properties are governed by the Canadian Securities
Administrators’ National Instrument 43-101 Standards of Disclosure
for Mineral Projects (“NI 43-101”).
For this reason, information contained in this
news release in respect of the Mason project may not be comparable
to similar information made public by United States companies
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and regulations
thereunder. For further information on the differences between the
disclosure requirements for mineral properties under the United
States federal securities laws and NI 43-101, please refer to the
company’s AIF, a copy of which has been filed under Hudbay’s
profile on SEDAR at www.sedar.com and the company’s Form 40-F, a
copy of which has been filed on EDGAR at www.edgar.com.
Forward-Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. All information contained in this
news release, other than statements of current and historical fact,
is forward-looking information. Often, but not always,
forward-looking information can be identified by the use of words
such as “plans”, “expects”, “budget”, “guidance”, “scheduled”,
“estimates”, “forecasts”, “strategy”, “target”, “intends”,
“objective”, “goal”, “understands”, “anticipates” and “believes”
(and variations of these or similar words) and statements that
certain actions, events or results “may”, “could”, “would”,
“should”, “might” “occur” or “be achieved” or “will be taken” (and
variations of these or similar expressions). All of the
forward-looking information in this news release is qualified by
this cautionary note.
Forward-looking information includes, but is not
limited to, the results of the Mason PEA, including the production,
operating cost capital cost and cash cost estimates, metal price
assumptions, cash flow projections, metal recoveries, mine life
projections and production rates for the Mason project, the planned
design of the Mason project, the potential to further enhance the
economics of the Mason project, including through the exploration
of the Mason Valley property, the possibility of bringing the Mason
project into production and its position as compared to other
copper mines in the United States and expectations regarding future
work programs to advance the Mason project. Forward-looking
information is not, and cannot be, a guarantee of future results or
events. Forward-looking information is based on, among other
things, opinions, assumptions, estimates and analyses that, while
considered reasonable by us at the date the forward-looking
information is provided, inherently are subject to significant
risks, uncertainties, contingencies and other factors that may
cause actual results and events to be materially different from
those expressed or implied by the forward-looking information.
The material factors or assumptions that Hudbay
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to:
- the success of exploration and
development activities at Mason;
- the accuracy of geological, mining
and metallurgical estimates;
- anticipated metals prices and the
costs of production;
- the supply and demand for metals
Hudbay produces;
- the supply and availability of all
forms of energy and fuels at reasonable prices;
- no significant unanticipated
operational or technical difficulties;
- the availability of additional
financing, if needed;
- the availability of personnel for
the company’s exploration, development and operational projects and
ongoing employee relations;
- maintaining good relations with the
communities in which the company operates, including the
neighbouring communities and local governments in Nevada;
- no significant unanticipated
challenges with stakeholders at the Mason project;
- no significant unanticipated events
or changes relating to regulatory, environmental, health and safety
matters;
- no contests over title to Hudbay’s
properties, including as a result of rights or claimed rights of
Indigenous peoples or challenges to the validity of its unpatented
mining claims;
- no significant unanticipated
litigation;
- certain tax matters, including, but
not limited to the mining tax regime in Nevada; and
- no significant and continuing
adverse changes in general economic conditions or conditions in the
financial markets (including commodity prices and foreign exchange
rates).
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks associated with the
COVID-19 pandemic and its effect on the company’s operations,
financial condition, projects and prospects, the possibility of a
global recession arising from the COVID-19 pandemic and attempts to
control it, risks generally associated with the mining industry,
such as economic factors (including future commodity prices,
currency fluctuations, energy prices and general cost escalation),
uncertainties related to the development and operation of the
company’s projects, risks in respect of Indigenous and community
relations, rights and title claims, risks in respect of permitting
the Mason project, uncertainties related to the geology,
continuity, grade and estimates of mineral reserves and resources,
and the potential for variations in grade and recovery rates, as
well as the risks discussed under the heading “Risk Factors” in the
company’s AIF.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. The company does not assume any obligation to update
or revise any forward-looking information after the date of this
news release or to explain any material difference between
subsequent actual events and any forward-looking information,
except as required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and copper projects in
Arizona and Nevada (United States). The company’s growth strategy
is focused on the exploration, development, operation and
optimization of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For investor and media inquiries, please
contact:
Candace BrûléDirector, Investor Relations
(416) 814-4387 candace.brule@hudbay.com
Detailed Cash Flow Model
Mason Cash Flow Model |
Unit |
LOM |
Y-03 |
Y-02 |
Y-01 |
Y01 |
Y02 |
Y03 |
Y04 |
Y05 |
Y06 |
Y07 |
Mining Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined |
000 tonnes |
1,133,427 |
|
- |
|
- |
|
- |
|
41,929 |
|
45,929 |
|
60,172 |
|
64,130 |
|
57,167 |
|
56,756 |
|
53,605 |
|
Waste mined |
000 tonnes |
1,448,540 |
|
- |
|
- |
|
- |
|
117,871 |
|
113,781 |
|
99,828 |
|
95,870 |
|
102,833 |
|
103,244 |
|
106,395 |
|
Rehandle |
000 tonnes |
301,531 |
|
- |
|
- |
|
- |
|
200 |
|
290 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Pre-strip – Ore mined |
000 tonnes |
3,012 |
|
- |
|
- |
|
3,012 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Pre-strip – Waste mined |
000 tonnes |
116,988 |
|
- |
|
- |
|
116,988 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Mineral moved |
000 tonnes |
3,003,498 |
|
- |
|
- |
|
120,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
Strip ratio excl. pre-strip |
waste/ore |
1.28 |
|
- |
|
- |
|
- |
|
2.81 |
|
2.48 |
|
1.66 |
|
1.49 |
|
1.80 |
|
1.82 |
|
1.98 |
|
Mining rate |
000 t/day |
353 |
|
- |
|
- |
|
329 |
|
438 |
|
438 |
|
438 |
|
438 |
|
438 |
|
438 |
|
438 |
|
Unit cost |
$/t moved |
1.20 |
|
- |
|
- |
|
- |
|
1.20 |
|
1.20 |
|
1.20 |
|
1.25 |
|
1.25 |
|
1.25 |
|
1.29 |
|
Milling Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled |
000 tonnes |
1,136,439 |
|
- |
|
- |
|
- |
|
36,500 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
Headgrade – Cu |
% |
0.296% |
|
- |
|
- |
|
- |
|
0.310% |
|
0.381% |
|
0.356% |
|
0.380% |
|
0.367% |
|
0.369% |
|
0.364% |
|
Headgrade – Mo |
% |
0.006% |
|
- |
|
- |
|
- |
|
0.006% |
|
0.008% |
|
0.005% |
|
0.007% |
|
0.003% |
|
0.002% |
|
0.003% |
|
Headgrade – Au |
g/tonne |
0.032 |
|
- |
|
- |
|
- |
|
0.013 |
|
0.026 |
|
0.024 |
|
0.027 |
|
0.042 |
|
0.029 |
|
0.025 |
|
Headgrade – Ag |
g/tonne |
0.667 |
|
- |
|
- |
|
- |
|
0.381 |
|
0.516 |
|
0.527 |
|
0.659 |
|
0.826 |
|
0.590 |
|
0.597 |
|
Milling Rate |
000 t/day |
115 |
|
- |
|
- |
|
- |
|
100 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
Unit cost |
$/t milled |
4.85 |
|
- |
|
- |
|
- |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
Concentrates Produced & Sold |
|
|
|
|
|
|
|
|
|
|
|
|
Copper concentrate |
000 tonnes |
10,108 |
|
- |
|
- |
|
- |
|
339 |
|
501 |
|
468 |
|
499 |
|
482 |
|
485 |
|
479 |
|
Contained metal – Cu |
000 tonnes |
3,033 |
|
- |
|
- |
|
- |
|
102 |
|
150 |
|
140 |
|
150 |
|
145 |
|
145 |
|
144 |
|
Contained metal – Au |
000 ounces |
696 |
|
- |
|
- |
|
- |
|
9 |
|
22 |
|
20 |
|
23 |
|
36 |
|
24 |
|
21 |
|
Contained metal – Ag |
000 ounces |
14,630 |
|
- |
|
- |
|
- |
|
268 |
|
436 |
|
445 |
|
556 |
|
698 |
|
499 |
|
504 |
|
Payable metal - Cu |
000 tonnes |
2,926 |
|
- |
|
- |
|
- |
|
98 |
|
145 |
|
135 |
|
145 |
|
140 |
|
140 |
|
139 |
|
Payable metal – Au |
000 ounces |
618 |
|
- |
|
- |
|
- |
|
- |
|
20 |
|
18 |
|
21 |
|
32 |
|
22 |
|
19 |
|
Payable metal – Ag |
000 ounces |
12,133 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
501 |
|
628 |
|
449 |
|
454 |
|
Moly concentrate |
000 tonnes |
64 |
|
- |
|
- |
|
- |
|
2 |
|
3 |
|
2 |
|
3 |
|
1 |
|
1 |
|
1 |
|
Contained metal – Mo |
000 tonnes |
32 |
|
- |
|
- |
|
- |
|
1 |
|
2 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
Payable metal – Mo |
000 tonnes |
31 |
|
- |
|
- |
|
- |
|
1 |
|
2 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
Capital Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Project capital |
$ millions |
2,079 |
|
228 |
|
839 |
|
1,012 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sustaining capital |
$ millions |
541 |
|
- |
|
- |
|
- |
|
29 |
|
34 |
|
34 |
|
34 |
|
34 |
|
29 |
|
29 |
|
Deferred stripping |
$ millions |
427 |
|
- |
|
- |
|
- |
|
77 |
|
66 |
|
28 |
|
17 |
|
37 |
|
38 |
|
49 |
|
Total |
$ millions |
3,046 |
|
228 |
|
839 |
|
1,012 |
|
106 |
|
100 |
|
62 |
|
51 |
|
71 |
|
67 |
|
78 |
|
Operating Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
$ millions |
3,458 |
|
- |
|
- |
|
- |
|
192 |
|
192 |
|
192 |
|
200 |
|
200 |
|
200 |
|
206 |
|
Deferred stripping |
$ millions |
(427) |
|
- |
|
- |
|
- |
|
(77) |
|
(66) |
|
(28) |
|
(17) |
|
(37) |
|
(38) |
|
(49) |
|
Milling |
$ millions |
5,506 |
|
- |
|
- |
|
- |
|
179 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
G&A |
$ millions |
1,272 |
|
- |
|
- |
|
- |
|
46 |
|
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
Closure + surety bonds |
$ millions |
153 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
Total |
$ millions |
9,963 |
|
1 |
|
1 |
|
1 |
|
340 |
|
396 |
|
435 |
|
453 |
|
433 |
|
432 |
|
427 |
|
Cost Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost |
$/lb Cu prod. |
1.61 |
|
- |
|
- |
|
- |
|
1.81 |
|
1.40 |
|
1.65 |
|
1.56 |
|
1.52 |
|
1.58 |
|
1.59 |
|
Sustaining cash cost |
$/lb Cu prod. |
1.76 |
|
- |
|
- |
|
- |
|
2.30 |
|
1.72 |
|
1.86 |
|
1.73 |
|
1.76 |
|
1.81 |
|
1.85 |
|
Combined unit cost |
$/t milled |
8.66 |
|
- |
|
- |
|
- |
|
9.32 |
|
9.05 |
|
9.93 |
|
10.34 |
|
9.89 |
|
9.86 |
|
9.76 |
|
Cash Flow Summary |
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue |
$ millions |
21,838 |
|
- |
|
- |
|
- |
|
697 |
|
1,059 |
|
975 |
|
1,061 |
|
1,030 |
|
1,011 |
|
998 |
|
TC/RC |
$ millions |
(1,417) |
|
- |
|
- |
|
- |
|
(47) |
|
(70) |
|
(64) |
|
(70) |
|
(66) |
|
(65) |
|
(65) |
|
Freight |
$ millions |
(1,320) |
|
- |
|
- |
|
- |
|
(44) |
|
(65) |
|
(61) |
|
(65) |
|
(63) |
|
(63) |
|
(62) |
|
NSR royalty |
$ millions |
(76) |
|
- |
|
- |
|
- |
|
(2) |
|
(4) |
|
(3) |
|
(4) |
|
(4) |
|
(4) |
|
(3) |
|
Operating costs |
$ millions |
(9,963) |
|
(1) |
|
(1) |
|
(1) |
|
(340) |
|
(396) |
|
(435) |
|
(453) |
|
(433) |
|
(432) |
|
(427) |
|
Federal tax |
$ millions |
(576) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(2) |
|
(2) |
|
(5) |
|
(16) |
|
(15) |
|
State tax |
$ millions |
(314) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(6) |
|
(5) |
|
(10) |
|
(9) |
|
(8) |
|
WC changes |
$ millions |
0 |
|
37 |
|
100 |
|
28 |
|
(139) |
|
(16) |
|
6 |
|
(5) |
|
2 |
|
1 |
|
2 |
|
Cash from operations |
$ millions |
8,173 |
|
36 |
|
99 |
|
27 |
|
123 |
|
507 |
|
409 |
|
458 |
|
451 |
|
423 |
|
419 |
|
Capital costs |
$ millions |
(3,046) |
|
(228) |
|
(839) |
|
(1,012) |
|
(106) |
|
(100) |
|
(62) |
|
(51) |
|
(71) |
|
(67) |
|
(78) |
|
Unlevered free cash flow |
$ millions |
5,127 |
|
(192) |
|
(740) |
|
(984) |
|
17 |
|
407 |
|
348 |
|
407 |
|
380 |
|
356 |
|
342 |
|
Mason Cash Flow Model |
Unit |
Y08 |
Y09 |
Y10 |
Y11 |
Y12 |
Y13 |
Y14 |
Y15 |
Y16 |
Y17 |
Y18 |
Mining Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined |
000 tonnes |
61,926 |
|
60,606 |
|
75,486 |
|
69,209 |
|
72,697 |
|
60,446 |
|
56,742 |
|
65,268 |
|
69,051 |
|
62,323 |
|
45,688 |
|
Waste mined |
000 tonnes |
98,074 |
|
99,394 |
|
84,514 |
|
90,791 |
|
87,303 |
|
99,554 |
|
94,242 |
|
44,732 |
|
6,993 |
|
746 |
|
103 |
|
Rehandle |
000 tonnes |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Pre-strip – Ore mined |
000 tonnes |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Pre-strip – Waste mined |
000 tonnes |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Mineral moved |
000 tonnes |
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
160,000 |
|
150,983 |
|
110,000 |
|
76,043 |
|
63,069 |
|
45,791 |
|
Strip ratio excl. pre-strip |
waste/ore |
1.58 |
|
1.64 |
|
1.12 |
|
1.31 |
|
1.20 |
|
1.65 |
|
1.66 |
|
0.69 |
|
0.10 |
|
0.01 |
|
0.00 |
|
Mining rate |
000 t/day |
438 |
|
438 |
|
438 |
|
438 |
|
438 |
|
438 |
|
414 |
|
301 |
|
208 |
|
173 |
|
125 |
|
Unit cost |
$/t moved |
1.29 |
|
1.29 |
|
1.29 |
|
1.31 |
|
1.32 |
|
1.30 |
|
1.37 |
|
1.41 |
|
1.43 |
|
1.44 |
|
1.39 |
|
Milling Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled |
000 tonnes |
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
Headgrade – Cu |
% |
0.336% |
|
0.312% |
|
0.314% |
|
0.339% |
|
0.357% |
|
0.349% |
|
0.319% |
|
0.330% |
|
0.329% |
|
0.320% |
|
0.285% |
|
Headgrade – Mo |
% |
0.008% |
|
0.003% |
|
0.004% |
|
0.004% |
|
0.003% |
|
0.006% |
|
0.008% |
|
0.008% |
|
0.008% |
|
0.009% |
|
0.004% |
|
Headgrade – Au |
g/tonne |
0.042 |
|
0.044 |
|
0.043 |
|
0.040 |
|
0.026 |
|
0.026 |
|
0.037 |
|
0.039 |
|
0.040 |
|
0.040 |
|
0.051 |
|
Headgrade – Ag |
g/tonne |
0.904 |
|
0.916 |
|
0.751 |
|
0.733 |
|
0.639 |
|
0.572 |
|
0.854 |
|
1.008 |
|
0.867 |
|
0.846 |
|
1.028 |
|
Milling Rate |
000 t/day |
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
Unit cost |
$/t milled |
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
4.90 |
|
Concentrates Produced & Sold |
|
|
|
|
|
|
|
|
|
|
|
|
Copper concentrate |
000 tonnes |
442 |
|
410 |
|
412 |
|
445 |
|
469 |
|
459 |
|
419 |
|
433 |
|
432 |
|
420 |
|
374 |
|
Contained metal – Cu |
000 tonnes |
132 |
|
123 |
|
124 |
|
134 |
|
141 |
|
138 |
|
126 |
|
130 |
|
130 |
|
126 |
|
112 |
|
Contained metal – Au |
000 ounces |
35 |
|
37 |
|
36 |
|
34 |
|
22 |
|
22 |
|
31 |
|
33 |
|
34 |
|
34 |
|
43 |
|
Contained metal – Ag |
000 ounces |
764 |
|
774 |
|
634 |
|
619 |
|
540 |
|
483 |
|
721 |
|
852 |
|
733 |
|
715 |
|
869 |
|
Payable metal - Cu |
000 tonnes |
128 |
|
119 |
|
119 |
|
129 |
|
136 |
|
133 |
|
121 |
|
125 |
|
125 |
|
122 |
|
108 |
|
Payable metal – Au |
000 ounces |
32 |
|
33 |
|
33 |
|
30 |
|
20 |
|
20 |
|
28 |
|
30 |
|
30 |
|
31 |
|
39 |
|
Payable metal – Ag |
000 ounces |
688 |
|
696 |
|
571 |
|
557 |
|
486 |
|
435 |
|
649 |
|
767 |
|
660 |
|
644 |
|
782 |
|
Moly concentrate |
000 tonnes |
3 |
|
1 |
|
2 |
|
2 |
|
1 |
|
2 |
|
4 |
|
4 |
|
3 |
|
4 |
|
2 |
|
Contained metal – Mo |
000 tonnes |
2 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
2 |
|
2 |
|
2 |
|
2 |
|
1 |
|
Payable metal – Mo |
000 tonnes |
2 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
2 |
|
2 |
|
2 |
|
2 |
|
1 |
|
Capital Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Project capital |
$ millions |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sustaining capital |
$ millions |
29 |
|
27 |
|
27 |
|
25 |
|
25 |
|
25 |
|
25 |
|
27 |
|
27 |
|
10 |
|
10 |
|
Deferred stripping |
$ millions |
25 |
|
28 |
|
- |
|
3 |
|
- |
|
29 |
|
30 |
|
- |
|
- |
|
- |
|
- |
|
Total |
$ millions |
54 |
|
55 |
|
27 |
|
28 |
|
25 |
|
54 |
|
55 |
|
27 |
|
27 |
|
10 |
|
10 |
|
Operating Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
$ millions |
207 |
|
206 |
|
206 |
|
210 |
|
211 |
|
209 |
|
207 |
|
155 |
|
109 |
|
91 |
|
64 |
|
Deferred stripping |
$ millions |
(25) |
|
(28) |
|
- |
|
(3) |
|
- |
|
(29) |
|
(30) |
|
- |
|
- |
|
- |
|
- |
|
Milling |
$ millions |
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
215 |
|
G&A |
$ millions |
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
55 |
|
53 |
|
53 |
|
53 |
|
Closure + surety bonds |
$ millions |
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
Total |
$ millions |
453 |
|
448 |
|
477 |
|
478 |
|
481 |
|
450 |
|
448 |
|
426 |
|
377 |
|
359 |
|
332 |
|
Cost Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost |
$/lb Cu prod. |
1.63 |
|
1.77 |
|
1.87 |
|
1.77 |
|
1.78 |
|
1.67 |
|
1.70 |
|
1.56 |
|
1.41 |
|
1.35 |
|
1.38 |
|
Sustaining cash cost |
$/lb Cu prod. |
1.83 |
|
1.98 |
|
1.98 |
|
1.87 |
|
1.87 |
|
1.86 |
|
1.91 |
|
1.67 |
|
1.51 |
|
1.39 |
|
1.43 |
|
Combined unit cost |
$/t milled |
10.35 |
|
10.23 |
|
10.88 |
|
10.91 |
|
10.98 |
|
10.27 |
|
10.22 |
|
9.72 |
|
8.61 |
|
8.20 |
|
7.58 |
|
Cash Flow Summary |
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue |
$ millions |
971 |
|
889 |
|
892 |
|
958 |
|
982 |
|
974 |
|
921 |
|
955 |
|
949 |
|
932 |
|
832 |
|
TC/RC |
$ millions |
(63) |
|
(56) |
|
(57) |
|
(61) |
|
(64) |
|
(64) |
|
(60) |
|
(62) |
|
(61) |
|
(61) |
|
(52) |
|
Freight |
$ millions |
(58) |
|
(53) |
|
(54) |
|
(58) |
|
(61) |
|
(60) |
|
(55) |
|
(57) |
|
(56) |
|
(55) |
|
(49) |
|
NSR royalty |
$ millions |
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
(3) |
|
Operating costs |
$ millions |
(453) |
|
(448) |
|
(477) |
|
(478) |
|
(481) |
|
(450) |
|
(448) |
|
(426) |
|
(377) |
|
(359) |
|
(332) |
|
Federal tax |
$ millions |
(14) |
|
(21) |
|
(24) |
|
(23) |
|
(29) |
|
(31) |
|
(31) |
|
(27) |
|
(34) |
|
(41) |
|
(43) |
|
State tax |
$ millions |
(7) |
|
(11) |
|
(13) |
|
(12) |
|
(15) |
|
(16) |
|
(17) |
|
(15) |
|
(18) |
|
(21) |
|
(21) |
|
WC changes |
$ millions |
2 |
|
5 |
|
(0) |
|
(4) |
|
(1) |
|
0 |
|
3 |
|
(10) |
|
(8) |
|
(5) |
|
2 |
|
Cash from operations |
$ millions |
374 |
|
302 |
|
266 |
|
318 |
|
328 |
|
350 |
|
310 |
|
355 |
|
390 |
|
388 |
|
334 |
|
Capital costs |
$ millions |
(54) |
|
(55) |
|
(27) |
|
(28) |
|
(25) |
|
(54) |
|
(55) |
|
(27) |
|
(27) |
|
(10) |
|
(10) |
|
Unlevered free cash flow |
$ millions |
321 |
|
246 |
|
239 |
|
289 |
|
303 |
|
296 |
|
255 |
|
328 |
|
363 |
|
378 |
|
324 |
|
Mason Cash Flow Model |
Unit |
Y19 |
Y20 |
Y21 |
Y22 |
Y23 |
Y24 |
Y25 |
Y26 |
Y27 |
Y28 |
Y29 |
Mining Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined |
000 tonnes |
43,800 |
|
10,498 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Waste mined |
000 tonnes |
2,031 |
|
241 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Rehandle |
000 tonnes |
- |
|
33,302 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
4,939 |
|
- |
|
- |
|
Pre-strip – Ore mined |
000 tonnes |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Pre-strip – Waste mined |
000 tonnes |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Mineral moved |
000 tonnes |
45,831 |
|
44,041 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
4,939 |
|
- |
|
- |
|
Strip ratio excl. pre-strip |
waste/ore |
0.05 |
|
0.02 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Mining rate |
000 t/day |
126 |
|
29 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Unit cost |
$/t moved |
1.02 |
|
0.50 |
|
0.50 |
|
0.50 |
|
0.50 |
|
0.50 |
|
0.50 |
|
0.50 |
|
0.50 |
|
- |
|
- |
|
Milling Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled |
000 tonnes |
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
43,800 |
|
4,939 |
|
- |
|
- |
|
Headgrade – Cu |
% |
0.282% |
|
0.245% |
|
0.217% |
|
0.202% |
|
0.190% |
|
0.177% |
|
0.161% |
|
0.141% |
|
0.117% |
|
- |
|
- |
|
Headgrade – Mo |
% |
0.006% |
|
0.007% |
|
0.006% |
|
0.006% |
|
0.006% |
|
0.006% |
|
0.005% |
|
0.004% |
|
0.003% |
|
- |
|
- |
|
Headgrade – Au |
g/tonne |
0.054 |
|
0.032 |
|
0.026 |
|
0.023 |
|
0.021 |
|
0.019 |
|
0.020 |
|
0.016 |
|
0.012 |
|
- |
|
- |
|
Headgrade – Ag |
g/tonne |
1.067 |
|
0.637 |
|
0.510 |
|
0.453 |
|
0.419 |
|
0.379 |
|
0.373 |
|
0.300 |
|
0.249 |
|
- |
|
- |
|
Milling Rate |
000 t/day |
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
120 |
|
14 |
|
- |
|
- |
|
Unit cost |
$/t milled |
4.90 |
|
4.70 |
|
4.70 |
|
4.70 |
|
4.70 |
|
4.70 |
|
4.70 |
|
4.70 |
|
4.70 |
|
- |
|
- |
|
Concentrates Produced & Sold |
|
|
|
|
|
|
|
|
|
|
|
|
Copper concentrate |
000 tonnes |
370 |
|
322 |
|
285 |
|
265 |
|
249 |
|
232 |
|
212 |
|
185 |
|
17 |
|
- |
|
- |
|
Contained metal – Cu |
000 tonnes |
111 |
|
97 |
|
86 |
|
80 |
|
75 |
|
70 |
|
64 |
|
56 |
|
5 |
|
- |
|
- |
|
Contained metal – Au |
000 ounces |
46 |
|
27 |
|
22 |
|
19 |
|
18 |
|
16 |
|
17 |
|
13 |
|
1 |
|
- |
|
- |
|
Contained metal – Ag |
000 ounces |
901 |
|
538 |
|
431 |
|
383 |
|
354 |
|
321 |
|
315 |
|
253 |
|
24 |
|
- |
|
- |
|
Payable metal - Cu |
000 tonnes |
107 |
|
93 |
|
83 |
|
77 |
|
72 |
|
67 |
|
61 |
|
54 |
|
5 |
|
- |
|
- |
|
Payable metal – Au |
000 ounces |
41 |
|
24 |
|
20 |
|
17 |
|
16 |
|
15 |
|
15 |
|
12 |
|
1 |
|
- |
|
- |
|
Payable metal – Ag |
000 ounces |
811 |
|
484 |
|
387 |
|
345 |
|
319 |
|
288 |
|
283 |
|
228 |
|
21 |
|
- |
|
- |
|
Moly concentrate |
000 tonnes |
3 |
|
3 |
|
3 |
|
3 |
|
3 |
|
3 |
|
2 |
|
2 |
|
0 |
|
- |
|
- |
|
Contained metal – Mo |
000 tonnes |
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
0 |
|
- |
|
- |
|
Payable metal – Mo |
000 tonnes |
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
0 |
|
- |
|
- |
|
Capital Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Project capital |
$ millions |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Sustaining capital |
$ millions |
10 |
|
10 |
|
10 |
|
10 |
|
5 |
|
5 |
|
5 |
|
5 |
|
- |
|
- |
|
- |
|
Deferred stripping |
$ millions |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Total |
$ millions |
10 |
|
10 |
|
10 |
|
10 |
|
5 |
|
5 |
|
5 |
|
5 |
|
- |
|
- |
|
- |
|
Operating Costs |
|
|
|
|
|
|
|
|
|
|
|
|
Mining |
$ millions |
47 |
|
22 |
|
22 |
|
22 |
|
22 |
|
22 |
|
22 |
|
22 |
|
2 |
|
- |
|
- |
|
Deferred stripping |
$ millions |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Milling |
$ millions |
215 |
|
206 |
|
206 |
|
206 |
|
206 |
|
206 |
|
206 |
|
206 |
|
23 |
|
- |
|
- |
|
G&A |
$ millions |
44 |
|
44 |
|
35 |
|
35 |
|
35 |
|
35 |
|
35 |
|
35 |
|
4 |
|
- |
|
- |
|
Closure + surety bonds |
$ millions |
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
1 |
|
41 |
|
41 |
|
40 |
|
Total |
$ millions |
306 |
|
273 |
|
264 |
|
264 |
|
264 |
|
264 |
|
264 |
|
264 |
|
71 |
|
41 |
|
40 |
|
Cost Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost |
$/lb Cu prod. |
1.23 |
|
1.34 |
|
1.47 |
|
1.57 |
|
1.66 |
|
1.77 |
|
1.93 |
|
2.22 |
|
2.78 |
|
- |
|
- |
|
Sustaining cash cost |
$/lb Cu prod. |
1.28 |
|
1.40 |
|
1.54 |
|
1.64 |
|
1.70 |
|
1.82 |
|
1.97 |
|
2.27 |
|
2.79 |
|
- |
|
- |
|
Combined unit cost |
$/t milled |
6.99 |
|
6.23 |
|
6.02 |
|
6.02 |
|
6.02 |
|
6.02 |
|
6.02 |
|
6.02 |
|
6.22 |
|
- |
|
- |
|
Cash Flow Summary |
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue |
$ millions |
838 |
|
714 |
|
629 |
|
586 |
|
552 |
|
515 |
|
472 |
|
410 |
|
38 |
|
- |
|
- |
|
TC/RC |
$ millions |
(53) |
|
(46) |
|
(41) |
|
(38) |
|
(36) |
|
(34) |
|
(31) |
|
(27) |
|
(2) |
|
- |
|
- |
|
Freight |
$ millions |
(48) |
|
(42) |
|
(37) |
|
(35) |
|
(33) |
|
(30) |
|
(28) |
|
(24) |
|
(2) |
|
- |
|
- |
|
NSR royalty |
$ millions |
(3) |
|
(3) |
|
(2) |
|
(2) |
|
(2) |
|
(2) |
|
(2) |
|
(1) |
|
(0) |
|
- |
|
- |
|
Operating costs |
$ millions |
(306) |
|
(273) |
|
(264) |
|
(264) |
|
(264) |
|
(264) |
|
(264) |
|
(264) |
|
(71) |
|
(41) |
|
(40) |
|
Federal tax |
$ millions |
(37) |
|
(43) |
|
(34) |
|
(26) |
|
(22) |
|
(20) |
|
(17) |
|
(13) |
|
(8) |
|
- |
|
- |
|
State tax |
$ millions |
(19) |
|
(20) |
|
(17) |
|
(13) |
|
(12) |
|
(10) |
|
(9) |
|
(7) |
|
(4) |
|
- |
|
- |
|
WC changes |
$ millions |
(5) |
|
3 |
|
4 |
|
3 |
|
1 |
|
2 |
|
3 |
|
4 |
|
(8) |
|
(2) |
|
- |
|
Cash from operations |
$ millions |
367 |
|
290 |
|
239 |
|
210 |
|
185 |
|
158 |
|
125 |
|
77 |
|
(58) |
|
(43) |
|
(40) |
|
Capital costs |
$ millions |
(10) |
|
(10) |
|
(10) |
|
(10) |
|
(5) |
|
(5) |
|
(5) |
|
(5) |
|
- |
|
- |
|
- |
|
Unlevered free cash flow |
$ millions |
357 |
|
280 |
|
229 |
|
200 |
|
180 |
|
153 |
|
120 |
|
72 |
|
(58) |
|
(43) |
|
(40) |
|
Model Assumptions
METAL |
UNIT |
PRICE |
|
Copper |
$/lb |
$3.10 |
|
Molybdenum |
$/lb |
$10.00 |
|
Gold |
$/oz |
$1,500.00 |
|
Silver |
$/oz |
$18.00 |
|
|
|
|
|
METAL |
UNIT |
RECOVERIES |
|
Copper |
% |
90.00% |
|
Molybdenum |
% |
50.00% |
|
Gold |
% |
60.00% |
|
Silver |
% |
60.00% |
|
|
|
|
|
METAL |
UNIT |
CONC. GRADE |
|
Copper |
% |
30.00% |
|
Molybdenum |
% |
50.00% |
|
|
|
|
|
METAL |
UNIT |
PAYABILITY |
|
Copper |
% |
96.50% |
|
Molybdenum |
% |
99.00% |
|
Gold |
% |
90.00% |
|
Silver |
% |
90.00% |
|
|
Note: a 0.4% net
smelter return royalty is payable on minerals extracted from the
Mason claims. |
|
|
|
|
MATERIAL |
TYPE |
UNIT |
CHARGE |
Cu concentrate |
Treatment |
$/dmt |
$80.00 |
Payable moly |
Roasting |
$/lb |
$1.20 |
Payable copper |
Refining |
$/lb |
$0.08 |
Payable gold |
Refining |
$/oz |
$5.00 |
Payable silver |
Refining |
$/oz |
$0.50 |
|
|
|
|
MATERIAL |
TYPE |
UNIT |
VALUE |
Cu concentrate |
Moisture |
% H2O |
8.00% |
Blended freight |
$/wmt |
$119.67 |
Mo concentrate |
Moisture |
% H2O |
4.00% |
Blended freight |
$/wmt |
$72.73 |
Figure 1: Mason Location MapThe
Mason project is located in west-central Nevada, approximately 75
kilometres southeast of Reno and seven kilometres west of the town
of Yerington. The area is known as the historic Yerington Mining
District due to known historical mining
activities.https://www.globenewswire.com/NewsRoom/AttachmentNg/89db298e-d898-4b48-b2b7-1565d3fd4946
Figure 2: Mason Land
PackageThrough a combination of patented and unpatented
mineral claims on public and private land, the Mason project has a
total area of approximately 13,820 hectares, including the land
acquired through the Mason Valley acquisition in
2019.https://www.globenewswire.com/NewsRoom/AttachmentNg/dc4575cd-44d2-42fe-ab83-1f44007456c5
Figure 3: Mason Proposed Site
LayoutProposed site layout including the location of the
Mason open pit mine, the processing plant, waste rock facility and
tailings management
facility.https://www.globenewswire.com/NewsRoom/AttachmentNg/21526cfc-d5dd-4a51-992a-8a61373cfd48
Figure 4: Mason Valley Historical
MinesThe Mason Valley property consists of several
past-producing mines with visuals of copper mineralization in the
area.https://www.globenewswire.com/NewsRoom/AttachmentNg/81253ee0-79e4-437d-b8a2-d26212189dd1
________________________i Copper equivalent grade calculated
using the following commodity price assumptions: $3.10 per pound
copper, $1,500 per ounce gold, $18.00 per ounce silver and $10.00
per pound molybdenum.
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