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Selkirk Copper PEA values Minto restart at $494M
The study estimates a 1.9-year payback and a 47.8% after-tax internal rate of return, while noting Minto’s economics are especially sensitive to copper prices.
Selkirk Copper Mines says a preliminary economic assessment for its brownfield Minto project in Yukon values the restart at $494 million, nearly three times the company’s $186 million initial capital costs, according to Mining.com. Discounted at 7%, the PEA estimates an after-tax net present value of $494 million and a post-tax internal rate of return of 47.8%, with a relatively short 1.9-year payback period. Selkirk said the study supports pursuing a restart decision after completion of a feasibility study and receipt of permit amendments, targeted for H2-2027, with first concentrate production targeted for H2-2028.
The assessment assumes restart costs tied to modest expenditures to bring the existing mine back into operation, while excluding capital items such as dewatering, rehabilitation and re-servicing underground workings. Selkirk also said the PEA comes as its resource update for Minto nearly tripled contained metal compared with the prior estimate. Even with the base case economics, Selkirk shares fell more than 18% to C$1.41 apiece in Toronto on Tuesday morning, valuing the company at about C$223.6 million. The PEA base case uses assumptions of $5 per lb copper, US$3,600 per oz gold and US$50 per oz silver, and Selkirk noted it must still secure permit amendments and project financing before restarting, as it has not yet signed concentrate offtake agreements.
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