Impact: Positive
Denarius reported a Pre-Feasibility Study (PFS) for its recently acquired, 50%-owned Aguablanca Ni-Cu project in Spain. The PFS outlined a six-year mining operation with an after-tax NPV5% of US$83.1M, IRR of 213% and 1.2-year payback period (at US$7.30/b Ni and US$3.50/lb Cu). This is a relatively small, underground, low capital-intensive project with a robust economic profile. We believe the PFS demonstrates that Aguablanca could be restarted with only modest capex, while returning a compelling after-tax NPV and IRR. We believe Denarius is well on its way to becoming a near-term Ni-Cu producer, with production expected from Zancudo in H2/24 and from Aguablanca in early 2025.