Positive Feasibility a key catalyst for Nzuri Copper, says top Sydney analyst

3rd November 2017
Resources Rising Stars

Nzuri Copper (ASX: NZC) has recently released robust feasibility study results for its flagship Kalongwe copper-cobalt project in the Democratic Republic of Congo, says Sydney-based analyst Gavin Wendt.

“Copper is performing strongly and cobalt prices are booming thanks to its use in batteries, combined with a looming supply shortage,” Wendt says in an initiation note on the Perth-based company.

“The Nzuri feasibility study highlighted the strong financial credentials of the project with an internal rate of return of up to 71% on a development with a modest estimate capital cost of US$53.1 million.

“The key numbers in the Nzuri study include annual production of 19,360 tonnes of copper and 1507 tonnes of cobalt. Initial mine life is estimated to be seven years with the cash cost of combined copper and cobalt calculated at US$1.35 per pound of copper equivalent.

“Small when compared with other copper and cobalt mines, Kalongwe is a start mine for Nzuri in the Katanga region of the Congo – a location known for very large developments which supply a large proportion of the world’s copper and most of its cobalt.”

Wendt says funding options being considered by Nzuri include a conventional debt and equity package as well as off-take agreements with strategic partners.”

To view a full copy of the Minelife report on Nzuri Copper, click here.

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