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Bravo Mining raises Luanga project NPV to $1.45B in new study
The prefeasibility work boosts after-tax NPV by 16% to $1.45 billion while adding a smelter, lifting the IRR to 35% and extending payback to two years.
Mining.com reports that Bravo Mining has updated the economics for its Luanga polymetallic project in Brazil, with a new prefeasibility study increasing the project’s after-tax net present value by 16% to $1.45 billion.
The study assumes an 8% discount rate and pegs Luanga at a 35% after-tax internal rate of return, with a two-year payback period. Bravo said the upgrade comes despite higher pre-production capital because the revised plan includes a smelter.
Under the earlier preliminary economic assessment, Luanga was modeled at a $1.25 billion NPV, a 49% IRR, and a 2.4-year payback. With the included smelter, base case pre-production capital is about $785 million, compared with $496 million in the PEA, while sustaining capital is projected at about $98 million.
Bravo is proposing a vertically integrated operation in Brazil, combining an open-pit mine and concentrator in the Carajás mineral province with a smelter located about 600 km away at the Barcarena Export Processing Zone, where it expects fiscal and customs benefits. The company estimates the location would cut smelter capital by $90 million and reduce operating costs by $41.20 per tonne, and it said the study supports steps toward seeking an installation licence, paving the way for construction but not operations.