Cyprium Metals Limited (ASX: CYM) is an Undervalued Copper Producer

Updated: Apr 21

✦ Barry Cahill, Executive Director of Cyprium Metals Limited (ASX:CYM) brings some positive news of the company's progress.


Mr. Cahill updates Noel Ong, CEO of Samso on the company's Restart Study, which could change some minds on the real value of the company as a copper producer.


Cyprium's Nifty Story is one that's interesting to follow. Especially with the release of their Restart Study, there is much to come as the company progresses down the path of mining and delivery copper plates.


Nifty Copper Project Restart Study

This was announced by the company on 11th March.


HIGHLIGHTS

  • Current copper price ~USD4.60/lb

  • Oxide C1 costs of USD1.91/lb and C3 costs of USD2.82/lb

  • Average production of 25,000 tpa copper cathode

  • Oxide cathode production 146,100 tonnes copper metal

  • Pre-production capital AUD149M

  • Positive engagement with Financiers now accessing final study and extensive data room

  • NPV @7% of AUD277M with an IRR of 37% (post tax)

  • Mineral Resource Estimate (MRE) to include 2021 drilling & inferred resource conversion

  • Oxide mine life 2023-29 at ~6.3 years (pre-MRE upgrade) with sulphide potential +20yrs

  • Metallurgical testwork confirms 85% recovery in Retreat and 90% in Oxide Pit material

  • Free cashflow AUD544M

  • Payback in 3 years

  • Regulatory approvals submitted and on track

  • Sulphide heap leach metallurgy testwork commenced

NEXT STEPS

  • Finalise the Financing of the project during Q2 2022

  • Update the Mineral Resource and in pit inventory, including expansion options

  • Complete financing and final government approvals post FID

  • Commence refurbishment and construction post finance and government approvals

  • Plate copper metal in the second half of 2023

It's not the first time Mr. Cahill has dropped in for a coffee chat with Noel, and the way stories grasp us is it makes us want to find out what's been happening since the last time we connected, and what's going on right now.


Mr. Cahill has some happy news as he updates on how the Cyprium business will take shape in the coming 18 months. Basically, the company is planning to be in production in 2023 and this is effectively shaped by their Nifty Copper Project Restart study.


There is much to unveil in the Cyprium story, what with all the approval stages being met and in the process of being submitted. The process of extracting the copper is also not arduous, and funding at this stage for the start should not be an issue.


Get the good news here:


Chapters:


00:00 Start

00:15 Introduction

00:58 Barry and the mineral resource.

03:45 The Copper price margin.

05:06 Potential future mine life.

07:18 The Nifty West Drilling

08:50 The Pit Shells

10:48 The Nifty Processing Story

16:25 How big can the Nifty resources get?

18:10 What could derail the Nifty Story?

22:00 How does the Nifty Story compare to others in the market?

25:58 Any Environmental Issues?

29:07 Why is Cyprium so cheap?

31:53 History repeats itself.

32:44 What are shareholders and potential investors look at in Cyprium?

35:50 Who are your peers?

36:48 The other projects? The Total Strategy.

41:05 The plan going ahead.

44:55 No short cuts in mining.

45:25 The case of Risk Reduction.

46:28 Conclusion.


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