Ivanhoe Electric’s preliminary feasibility study for the Santa Cruz copper project in Arizona reveals an after-tax net present value (NPV) of $1.4 billion, with initial costs estimated at $1.24 billion. The underground mine is projected to produce 72,000 tonnes of copper cathode annually over the first 15 years of a 23-year operational life, and boasts an internal rate of return (IRR) of 20% based on a copper price of $4.25 per pound. At the current copper price of $4.83 per pound, NPV increases to $1.9 billion and IRR to 24%.
The resource assessment identifies probable reserves of 136 million tonnes at a grade of 1.08% copper, amounting to 1.5 million tonnes of contained copper. Construction is anticipated to begin in the first half of 2024, with first copper cathode production expected in 2028 and full production in 2029. Production costs are projected at $17,000 per tonne, with cash costs of $1.32 per pound over the mine’s lifespan. The project is positioned on 24.2 square kilometers of private land in Casa Grande, Arizona, about 77 km south of Phoenix.
Ivanhoe shares increased by 4.1% to C$11.32 in Toronto, resulting in a market capitalization of C$1.08 billion ($790 million). The stock’s 12-month trading range is between C$6.45 and C$16.50.
