Ero Copper’s Furnas PEA Yields $2.0B NPV, 27% IRR and 24-Year Mine Life
Ero Copper’s inaugural PEA for Furnas outlines a 24-year mine life, 108,000 t annual copper-equivalent output over 15 years and $0.30/lb C1 cash costs. It estimates an after-tax NPV (8%) of $2.0 billion and a 27% IRR on $1.3 billion initial capital.
1. PEA Overview
Ero Copper’s PEA for Furnas defines a 24-year initial mine life and projects average annual copper-equivalent production of 108,000 tonnes over the first 15 years, supported by a resource base remaining open at depth and along strike.
2. Economic Highlights
The assessment calculates an after-tax NPV of $2.0 billion at an 8% discount rate and a 27% IRR based on copper at $4.60/lb, gold at $3,300/oz and silver at $40/oz. At copper prices of $6.10/lb and gold at $5,550/oz, NPV more than doubles to $4.7 billion with a 44% IRR.
3. Operational Details
Initial capital expenditure is pegged at $1.3 billion, reflecting capital intensity of about $16,000 per copper-equivalent tonne. Life-of-mine C1 cash costs are forecast at $0.30 per pound of copper, bolstered by substantial gold and silver by-product credits, with mill throughput of 13.5 Mtpa.
4. Upside and Next Steps
The company is evaluating additional exploration drilling, a magnetite recovery circuit for high-grade concentrate and a gravity pre-concentration stage to boost gold recovery and by-product revenues. Ero aims to earn a 60% interest through its earn-in agreement with Vale Base Metals before advancing detailed engineering and permitting.