Value rises to $1.45B for Bravo’s Luanga PGM project in Brazil
A new economic study has lifted the proposed mine’s after-tax net present value 16% over a previous analysis.
Bravo Mining's Luanga PGM project in Brazil has seen its after-tax net present value rise to $1.45 billion, a 16% increase from a previous analysis. With a higher pre-production capital due to the inclusion of a smelter, the project now offers a 35% after-tax internal rate of return and a two-year payback period, according to a new prefeasibility study released by the company.
Previously, a preliminary economic assessment indicated a $1.25 billion NPV, a 49% IRR, and a 2.4-year payback. The Toronto-based company plans to develop Luanga as a vertically integrated operation, featuring an open-pit mine, concentrator, and smelter in Brazil. The smelter's location in the Bararena Export Processing Zone will yield fiscal and customs benefits, including a $90 million capital reduction and $41.20 per tonne operating-cost savings.
The prefeasibility study confirms Bravo's strategy of vertically integrating Luanga, which they believe will offset the additional smelter capital required. With its polymetallic profile, Luanga could provide Brazil with new sources of critical minerals, while Bravo's proposed domestic smelter would retain more value within the country.
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