• PROJECTS AND EXPLORATION
Zinc Mine and the Flat Mines Project, which is part of the Okiep Copper Project( OCP).
The development of these projects in South Africa’ s Northern Cape will play an important role in unlocking economic development and community development opportunities, which are both essential for the region’ s long-term prosperity.
PCZM DFS
The outstanding results PCZM confirm the potential to develop a long-life, financially robust mining operation.
The Prieska DFS outlines an optimised two-phase development strategy aimed at de-risking the mine’ s development pathway and accelerating value creation.
In March this year, outgoing CEO Errol Smart commented,“ The 2025 DFS for our flagship Prieska Copper Zinc Mine marks the culmination of a major strategic and technical re-think of the development strategy for this large-scale base metal mine undertaken over the past few years. The outstanding results confirm the potential to develop a long-life, financially robust mining operation through a two-phase development plan which substantially derisks the mine development pathway and fast-tracks initial cash flow.”
PCZM DFS financial highlights
• Net Present Value( NPV)( at an 8 % discount rate) o Pre-tax: AUD797-million( ZAR9 966-million) o Post-tax: AUD568-million( ZAR7 105-million)
• Internal Rate of Return( IRR) of 31 % pre-tax( 26 % post-tax)
• Payback period of 4.8 years – from start of production
• Peak funding requirement of AUD578-million( ZAR7 230-million)
• Total project capital expenditure( including contingency) of AUD607-million( ZAR7 592-million)
• Capital intensity of USD9 174 / t, based on nameplate annual copper equivalent production
• All-in-sustaining costs of USD4 550 / t( USD2.06 / lb) of copper equivalent metal sold
• All-in-sustaining cost net of by-product credits of USD2 359 / t( USD1.08 / lb) of payable copper sold
• All-in-sustaining margin of 52 %
• Ore processing rate of 240ktpa for the Upper-Level Phase and 2.4Mtpa for the Deeps Phase
• Nameplate annual copper production for the Deeps of 22ktpa and zinc production of 65ktpa
14 • African Mining • May 2025 www. africanmining. co. za