Shares in Europa Metals (EUZ:LSE) spiked this morning as the company released the results from the Toral lead-zinc-silver mine project in North West Spain.
The company sees a 12-year life at around 700,000 tonnes per annum. This means the study pitched the project’s net value (NPV) at US$156mln and sees an internal rate of return (IRR) of 31.3%.
In terms of cost, the upfront capital requirement is estimated at US$79mln and life-of-mine operating costs are seen at US$477mln. The project is predicted to generate US$963mln of revenue over life-of-mine, with life-of-mine earnings (EBITDA) forecast at US$471mln.
Laurence Read, Europa chief executive said “Having recently secured a new three-year investigation permit for Toral and with today’s updated economics attributing a US$156mln NPV and a 31.3% IRR, the board shall progress Europa’s strategy to secure the most value-accretive pathway to advance the project,”. He then added “With work towards a PFS for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work.”.