Projects
Pre-Feasibility Study (PFS)
Xanadu Mines published a Pre-Feasibility Study in October 2024, which confirms the potential of Kharmagtai as a globally significant, long life, low cost, low risk future copper-gold mine.
The PFS was based on conventional open pit mining and sulphide flotation, with low environmental, social and governance (ESG) risk, and supported by nearby rail, road and power links providing the potential for rapid development.
Highlights
- Presented in 100% Terms (Xanadu holds 50% control and 38.25% economic share)
- Confirms Kharmagtai as a potential world class, low cost, long life mine. Estimated Results:
- 21% IRR (range 14-25%, and 31% at spot commodity prices)US$930 million NPV @ 8% (range US$ 450-1,220 million, and US$1,880 million at spot commodity prices)4-year payback (range 4-5 years, and 3 years at spot commodity prices)
- 29-year mine life
- Projected production ranges from 60-80ktpa copper and 165-170kozpa gold production across the first and second stages of expansion.
- First quartile all-in sustaining (C1) costs of US$0.70/lb Cu for first eight years, net of by-product credits
- Conventional, low technical complexity open pit and process plant with low 0.6:1 strip ratio for first eight years
- Located in sparsely populated, flat terrain, with nearby established rail, power and water links
- Bankable Feasibility Study expected to commence in Q1 CY2025 and complete in Q2 of CY2026
Key Metrics
| Measure | Unit | PFS Low Case | PFS Base Case | PFS High Case | PFS at Spot Prices | Scoping Study |
| Post-Tax NPV(8%) | US$M | 450 | 930 | 1,220 | 1,880 | 630 |
| Post-Tax IRR | % | 14% | 21% | 25% | 31% | 20 |
| Post-Tax Capital Payback | Years | 5 | 4 | 4 | 3 | 4 |
| LOM EBITDA | US$M | 7,400 | 8,500 | 9,500 | 12,500 | 6,770 |
| Pre-Production Capex | US$M | 930 | 890 | 840 | 690 | |
| Copper Price | US$/lb | 3.69 | 4.10 | 4.51 | 4.52 | 4.00 |
| Gold Price | US$oz | 2,210 | 2,100 | 1,990 | 2,658 | 1,700 |
| Measure | Unit | PFS Base Case | Scoping Study |
| Annual Cu Production | kt | 75 | 49 |
| Annual Au Production | koz | 165 | 110 |
| Life of Mine (LOM) | Years | 29 | 30 |
| LOM AISC | US$/lb | 1.90 | 1.87 |
| LOM C1 Cost | US$lb | 1.30 | 1.35 |
NPV Sensitivities (+/-20% parameter changes)
Annual Free Cash Flow (A$M)
Copper C1 Cash Cost (USc/lb)
Source: S&P Global Market Intelligence 2024 Forecast
Copper Production (kt)
Gold Production (kt)
References:
- ASX/TSX Announcement 14 October 2024 – Kharmagtai Pre-Feasibility Study