Jaguar Nickel Sulphide Project
Centaurus acquired Jaguar from global mining giant, Vale S.A, in April 2020, delivering the Company an exceptional exploration, growth and development opportunity in the international nickel sulphide sector and the cornerstone of our ambition to build a diversified Brazilian critical minerals business with best-in-class ESG credentials.
The Jaguar Nickel Sulphide Project is located in the western portion of the world-class Carajás Mineral Province of Brazil, and was acquired from global mining giant, Vale S.A., in April 2020. The Jaguar Project includes multiple nickel sulphide deposits and exploration targets within a 30km2 land package.
Following completion of the acquisition, Centaurus immediately commenced a major drilling program, and has since defined a global Mineral Resource Estimate (MRE) totalling 138.2Mt @ 0.87% Ni for 1.20Mt of contained nickel, confirming Jaguar as one of the largest nickel sulphide resources held by an ASX-listed company and the largest outside of the major mining companies. View Resources & Reserves
The global MRE at Jaguar has increased by 27% since the previous Mineral Resource Estimate announced in November 2022 and more than doubled since the Company’s maiden MRE was announced in June 2020, including a more than 30% increase in the higher-confidence Measured and Indicated categories to almost 1 million tonnes of contained nickel, representing more than 81% of the Global MRE.
The Jaguar JORC Mineral Resource Estimate (MRE) Growth – August 2024
The November 2022 MRE underpinned a positive Feasibility Study and maiden JORC Ore Reserve for the Jaguar Project, which was completed in July 2024, demonstrating strong economics and a clear pathway for the development of Jaguar as a sustainable, long-life and low-cost nickel project. Key outcomes of the Feasibility Study included:
- A maiden JORC Ore Reserve of 63Mt @ 0.73% Ni for 459,200 tonnes of contained nickel
- Forecast production averaging 18,700tpa of nickel over an initial 18-year open pit mine life via a conventional 3.5Mtpa nickel flotation circuit
- Low capital intensity with pre-production CAPEX of US$371 million (including pre-strip and contingency)
- First quartile C1 cash cost of US2.30/lb and AISC of US$3.57/lb
- Post Tax operating cash flow of US$2.11 billion
- Post Tax NPV8 of A$997 million and an IRR of 31% pa
- Life-of-Mine (LOM) nickel price assumption of US$19,800/tonne (US$8.98/lb) and 76% nickel payability
- FID targeted for Q2 2025 based on the current environmental approvals and development timeline
SUMMARY OF JAGUAR PROJECT FEASIBILITY STUDY RESULTS
The results of the 2024 Jaguar Feasibility Study have allowed the Board of Centaurus to commit to completing the targeted value engineering activities, actively advancing partnering discussions to support the required funding of the Project and undertaking any necessary pre-development activities required to continue to meet the overall project development timeline.
The key assumptions underpinning the economics of the Jaguar Nickel Sulphide Project are summarised below:
Table 1 - Base Case Financial Model Assumptions and Production Target
|
Assumptions
|
Units
|
Feasibility Study
|
|
Average LOM Exchange Rate
|
USD/BRL
|
5.30
|
|
Nickel Price (2024 real terms)
|
US$/tonne
|
19,800
|
|
Nickel Price (2024 real terms)
|
US$/lb
|
8.98
|
|
Nickel payability at Nickel Price
|
%
|
76
|
|
Corporate tax rate (under SUDAM Program)
|
%
|
15.25
|
|
Discount Rate (real terms)
|
%
|
8
|
|
Physicals
|
|
Ore Reserves
|
63.0Mt @ 0.73% Ni for 459,200t Contained Ni
|
|
Life of Mine Recovered Nickel
|
t
|
335,300
|
|
Average Life-of-mine Recovery to Concentrate
|
%
|
73
|
|
Concentrate Grade
|
%
|
12.3
|
Table 2 - Key Project Results Including Capital and Operating Assumptions
|
Key Project Financial Metrics
|
|
Key Financial Results
|
Units
|
Feasibility Study
|
|
Total Revenue (Net of Payabilities)
|
US$M
|
5,046
|
|
EBITDA
|
US$M
|
2,631
|
|
Tax Paid
|
US$M
|
282
|
|
Project Cashflow
|
|
Pre-Tax
|
US$M
|
2,020
|
|
Post Tax
|
US$M
|
1,738
|
|
Post Tax
|
A$M
|
2,614
|
|
Net Present Value (NPV8)
|
|
Pre-Tax
|
US$M
|
795
|
|
Post Tax
|
US$M
|
663
|
|
Post Tax
|
A$M
|
997
|
|
Internal Rate of Return (IRR)
|
|
Pre-Tax
|
% pa
|
34%
|
|
Post Tax
|
% pa
|
31%
|
|
Capital Payback Period
|
|
Pre-tax
|
Years
|
2.5
|
|
Post Tax
|
Years
|
2.7
|
|
Key Cost Information
|
Units
|
Feasibility Study
|
|
Capital Costs
|
|
Pre-Production Development Capital
|
US$M
|
371
|
|
Sustaining and Deferred Capital
|
US$M
|
237
|
|
Operating Costs (contained nickel basis)
|
|
C1 Cash Costs
|
US$/lb
|
2.30
|
|
Product Logistics
|
US$/lb
|
0.59
|
|
Royalties
|
US$/lb
|
0.36
|
|
Sustaining and Deferred Capital
|
US$/lb
|
0.32
|
|
All-in Sustaining Costs (AISC)
|
US$/lb
|
3.57
|
