Curis Resources (CUV.TO) has filed the Pre-Feasibility Study on their 100% owned Florence copper project in Arizona.
If we look at the conservative scenario and use a recovery rate of 63% and a long-term copper price of $2.75/lbs, the initial capex would be $217M. The IRR of 28% and NPV7.5% of $440M are very robust as we use a conservative recovery rate and copper price. Should we apply a 70% recovery rate and a copper price of $3/lbs, the IRR increases to 31% and the NPV7.5% to $585M, or C$10.50 per Curis share.
The capex increased by roughly $15-20M because they had to include the development of a production-grade pregnant solution, but that’s not a big shock. The Florence project still is one of the most economical copper projects in a safe region. The only overhang is that Curis still needs to work on a solution with the township of Florence to be allowed to recover all of the copper.
Disclosure: The author holds a long position in Curis Resources Ltd. Please see our disclaimer for current positions.
