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Philippines-focused Copper Development Corporation (LSE:CDC) is seeking a trade sale or a joint venture of its Hinoba-an Project, south of the country, following the release of a Comprehensive Technical Report (CTR) that referred to the project as “financially attractive”.
Background Story
The Hinoba-an Project, located in the island of Negros 700 kilometres south of the capital city Manila, has a combined resource of 319 million tonnes of ore, which contains about 2.5 billion pounds of copper metal at an average grade of 0.35% Cu, the independent report stated.
The AIM-listed Copper Development Corporation holds 92.5% economic interest in the project, subject to a 2% royalty to the original tenement holders.
The CTR also forecasted an annual production of 47,665 tonnes of copper over 15.4 years mine life at an average cost of US$1.57 / pound.
CDC projected a net present value (NPV) of US$479 million with an internal rate of return (IRR) at 36.3%, post tax and post-financing cash flow.
“The CTR contains the technical information necessary for prospective buyers or joint venture partners to evaluate the Hinoba-an Project, including mining, metallurgical, environmental, social and infrastructure studies, the majority of which have been prepared to a pre-feasibility study level of accuracy,” CDC disclosed in an official statement.
CDC plans to have a conventional open pit operation in a self-contained mining site with access to fresh water and geothermal power plant and about 25 kilometres away from the closest natural harbour.
Executive Chairman Mitch Alland noted there is “strong support for mining and a skilled labour force”.
The Hinoba-an Project results came a day after CDC reported copper grades of 0.51% and 0.62% in the Basay Project, also in Negros Island, where it holds 70% interest.
CDC plans to market its copper product to nearby Far East markets, primarily in China and South Korea. Copper prices from COMEX Copper Future and Options averaged at US$3.6 / pound.
Shares of CDC opened slightly higher by 0.25 pence, or 1.1%, to 23.25 pence a share on the Alternative Investment Market in London, at 8:15 AM GMT, following the announcement.
Company Spotlight
Copper Development Corporation is a copper mining and development company holding interests in the Philippines, namely the Basay Project and the Hinoba-an Project. CDC also holds interests in the Toronto-listed company Crazy Horse Resources, Inc., which owns the Taysan Project, a copper-gold deposit located 100 kilometres south of Manila.
References
↑ Hinoba-an Project Overview
↑ COMEX Copper Futures and Options
↑ Copper Development Corporation Overview
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