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Solaris Publishes Positive Pre-Feasibility Study Results and Maiden Mineral Reserve for the Warintza Project, with Significant Mineral Resource Increase, an Extensive Mine Life, and US$4.6bn NPV
HIGHLIGHTS OF THE PRESS RELEASE: Globally significant Mineral Resource with extensive m...
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[{"type":"text","content":"Solaris Publishes Positive Pre-Feasibility Study Results and Maiden Mineral Reserve for the Warintza Project, with Significant Mineral Resource Increase, an Extensive Mine Life, and US$4.6bn NPV\n\n\n\n\n HIGHLIGHTS OF THE PRESS RELEASE:\n \n\n\n\n\n Globally significant Mineral Resource with extensive mine life and first quartile cash costs driving significant Free Cash Flow (“FCF”) generation:\n \n\n\n\n Average annual copper equivalent (“CuEq”) production of over 300,000 tonnes in the first five years and over 240,000 tonnes during the first 15 years\n \n\n\n\n First quartile All-In Sustaining Cost (“AISC”) of US$0.85/lb of payable Cu for the first five years and US$1.07/lb of payable Cu during the first 15 years\n \n\n\n\n Post-tax net present value (“NPV”) (8%) of US$4,617M (pre-tax NPV\n \n\n\n 8\n \n\n\n\n %\n \n\n\n of US$7,492M) and a post-tax internal rate of return (“IRR”) of 26% (pre-tax IRR of 34%)\n \n\n\n\n Average annual Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) of US$1.9bn for the first five years and US$1.4bn during the first 15 years\n \n\n\n\n Average annual post-tax Free Cash Flow (“FCF”) of US$1.3bn for the first five years and US$1.0bn over the first 15 years\n \n\n\n\n Initial capital costs (pre-production) of US$3.7bn (including 15.7% overall contingency)\n \n\n\n\n Attractive capital intensity of ~US$15,440/avg tpa-CuEq over the first 15 years\n \n\n\n\n 2.6 year post-tax payback period (1.9 year pre-tax payback)\n \n\n\n\n\n\n Maiden Mineral Reserve estimate of 1.3 billion tonnes (Proven and Probable) at 0.41% CuEq (0.31% Cu, 0.02% Mo, 0.04 g/t Au and 1.30 g/t Ag), providing a mine life of 22 years\n \n\n\n\n 2025 Mineral Resource Estimate (“MRE”) incorporates a 312% increase in Measured plus Indicated Mineral Resources, at a cut-off grade of 0.1% Cu and a net smelter return (“NSR”) cut-off value of US$6.30/t, compared with the published 2024 MRE\n \n\n\n\n Possibility of extending the mine life by a timeframe in the order of 25 to 30 years beyond the Mineral Reserves\n \n\n\n\n LOM average strip ratio of 0.53 to 1 (waste to ore) positions Warintza as one of the lowest strip ratio copper mines globally, underpinning a very favourable strip-adjust...