American CuMo Mining Corp.'s shares jumped over 18% on April 10 after the company delivered positive results from an independent updated preliminary economic analysis for its CuMo copper-molybdenum project in Idaho.
The revised study, based on a 150,000-tonne-per-day throughput scenario, pegged a posttax net present value, at a 5% discount, of US$5.67 billion, an internal rate of return of 25% and a payback period of about four years.
Total cash flows are estimated at US$18.20 billion over 40 years.
The project is expected to produce 2.61 billion pounds of molybdenum, 2.83 billion pounds of copper and 100.2 million ounces of silver over a mine life of 82 years.
American CuMo also said the study showed a decrease in the production cost of molybdenum oxide from US$3.91/lb to US$1.58/lb.
Total CapEx is pegged at US$2.81 billion, including US$2.46 billion in sustaining CapEx.
The company will conduct further optimization studies later in the year as part of a pre-feasibility study, with a view to further reduce overall capital and operating costs and improve project economics, American CuMo President and CEO Shaun Dykes said.
