Recently I've done some comparisons with other copper projects...

Recently I've done some comparisons with other copper projects so here is another.

Sandfire Resources Motheo Project
1/12/2020 Original 3.2Mtpa FID became

The 30 August 2022 Motheo Copper Project Expansion DFS round up

Motheo Copper-Silver Project in the Kalahari Copper Belt in Botswana

5.2Mtpa Motheo Copper Project Expansion to drive peak copper production to 55ktpa.

3 x site locations = Matheo, A4 & T3

Mine life of 10 years, peak production of 55ktpa copper-in-concentrate, strip ratio of 6.2 waste to ore

LOM production: 440kt Cu and 18.4Moz Ag

LOM all-in sustaining costs of US$1.79/lb, LOM C1 cost of US$1.47

Total development capital for the Motheo Copper Project expansion case is estimated at US$397.4M,

(A$568.722m)

(Friday 29^th July close was AUD/USD$0.69876)

All-in-sustaining cash costs are cash operating costs (C1 cash costs plus royalties, sustaining capital, and closure costs).

Infrastructure

Motheo mining accommodation facility at 752 rooms requires no expansion to accommodate additional manning numbers associated with mining at A4. New infrastructure for A4 includes a light vehicle access road from the already constructed access road, a dual lane HV haul road to be constructed from A4 to the Motheo Processing Plant, workshops, fuel, crib and office facilities, electrical and water supplies.

752-person permanent village is 9,200m³, (95%) of process plant structural concrete poured, 950 tonnes (72%) of structural steel erected and the 132kV transmission line nearing completion. Earthworks and lining of the Tailing Storage Facility (TSF) is progressing

Planning is well advanced for a 22MW Photo Voltaic (PV) and Battery Energy Storage System (BESS). The PV plant would be located next to the process plant, with the potential to supply up to 34% of the project’s future energy needs and will reduce its CO² emissions by 475,000 tonnes over the LOM.

The capital for the PV plant is currently not included in the LOM capital as firm pricing submissions are being sought.

800,000 litre fuel farm

3.0MW Emergency Power Station

132 kV Substation

5.2Mtpa Expansion Ball Mill, 8 MW SAG Mill

Sandfire state:

The project’s economics are robust and have withstood the significant increases currently seen in input pricing for mining costs, diesel supply, reagents, grinding media and labour.

The estimated operating cost for the combined 5.2Mtpa T3 and A4 operation varies throughout the life of mine as changes occur in the cost to mine and process the deposits. The average operating cash cost (C1) over the life-of-mine, on a payable copper basis, is estimated to be approximately US$1.47/lb of copper. C1 consists of US$0.84/lb mining costs, US$0.56/lb processing cost inclusive of power, site administration and offsite logistics costs of US$0.23/lb, US$0.19/lb treatment and refining charges, and a silver by-product credit of US$0.35/lb copper. The estimated All-in Sustaining Cost (AISC), which includes C1 plus sustaining capital, is US$1.79/lb.

C1 cost 84c + 56c + 23c + 19c - 35c = $1.47
Take the 35c of credits out out of the equation leaves the original figure at US$1.82/Lb Cu
Not far behind CYM C1 costs with Motheo having double the Cu output at 55ktpa

The silver credits really helping to bring down their costs

The Government of Botswana has a right to acquire up to a 15% fully contributing interest in the A4 Deposit executed at the granting of the Mining Licence. The Government of Botswana did not take up the interest in the initial 3.2Mtpa T3 development.