Meridian’s Cabaçal value doubles on higher prices

AI desk brief

Meridian Mining’s Cabaçal feasibility study more than doubled the project’s after-tax NPV to $2.09bn and lifted IRR to 108%, but the step-up is heavily driven by higher commodity assumptions: $3,570/oz gold, $5.03/lb copper and $50.17/oz silver versus much lower prices in the prior study. The stock rose 18% to a record C$2.21, while Scotiabank kept an outperform rating and C$3 target.

The study outlines initial capex of $322m, first-year processing of 1.93mt rising to 4.5mt from year four, and average first-five-year output of 183,500 gold-equivalent oz at AISC of $715/oz. Financing and permitting remain key catalysts: the installation licence is still under review, Meridian has opened a lender data room, and the full technical report is due within 45 days.