Meridian Mining Shares Rise on Positive Cabaçal Project Study
Shares of Meridian Mining Plc (LSE:MNO, TSX:MNO) surged by 10% following the release of a definitive feasibility study for its Cabaçal gold-copper-silver project in Brazil. The report valued the project at $2 billion after-tax net present value with an internal rate of return of 108%, significantly higher than typical mining projects. The initial capital investment is estimated at $322 million, which would be recovered within a year due to strong projected cash flows. Over its expected mine life of nearly 14 years, Cabaçal could generate total revenue of $5.4 billion and average annual free cash flow of $414 million in the first five years. Meridian is already preparing for construction with preconstruction contracts totaling $15.9 million signed and discussions ongoing with up to 30 potential lenders.
Tickers: $MNO
Topics: feasibility_study gold_copper_silver_mining stock_movement