Celsius Resources upbeat on MCB definitive feasibility study

23rd Jan 2026 11:44

(Sharecast News) - Celsius Resources published a definitive feasibility study for the Maalinao-Caigutan-Biyog (MCB) copper-gold project in the Philippines on Friday, outlining a 35-year underground development with a post-tax NPV at an 8% discount of $771m and a post-tax IRR of 24% on long-range price assumptions, and materially higher returns using current spot prices.

The AIM-traded firm said the study put a pre-tax NPV at $1.3bn with a pre-tax IRR of 31%, based on copper at $4.30 per pound and gold at $3,000 per ounce for the first nine years, rising thereafter to $7.00 per pound and $4,500 per ounce.

Using spot prices of $6.00 per pound of copper and $4,500 per ounce of gold, Celsius said the pre-tax NPV would increase to $1.9bn with an IRR of 42%, while the post-tax NPV would rise to $1.2bn with a post-tax IRR of 34%.

Celsius said the project was underpinned by a JORC 2012 mineral resource of 343 million tonnes at 0.46% copper and 0.12 grams of gold per tonne, containing about 1.6 million tonnes of copper and 1.4 million ounces of gold, and a maiden ore reserve of 130.2 million tonnes at 0.66% copper and 0.21 grams of gold per tonne, containing 856,000 tonnes of copper and 891,000 ounces of gold.

The company said the reserve supported a 35.3-year mine life and a development plan prioritising a high-grade core in the first decade, with the DFS highlighting average grades of 1.08% copper and 0.51 grams of gold per tonne in years one to 10 versus 0.69% copper and 0.24 grams of gold per tonne over life of mine.

It said the base case assumed a 2.64 million tonnes per annum process plant, with average annual copper concentrate production of 102.5kt dry in the first 10 years and 66kt over the life of mine, and total recovered metal of 1,234Mlb of copper and 507koz of gold.

Recoveries were estimated at 92.5% for copper and 79.7% for gold in the first 10 years, easing to 89.7% and 72.6% respectively over life of mine, with concentrate produced via conventional crushing, grinding and flotation.

Celsius put initial capital expenditure at $276m, including $26.5m of contingency and $15.1m of growth, with a payback period of 4.7 years from the start of production.

It estimated average C1 cash costs, net of by-product credits, of 41 cents per pound of copper in the first 10 years and $1.73 per pound over life of mine, and said early mining of higher-grade ore would support EBITDA of around $230m a year in years one to 10 and an average of about $144.6m a year over the mine life.

The underground operation was planned to use sublevel open stoping with paste backfill, with access via decline and truck haulage during the first three years before transitioning to a shaft and hoisting system as the mine deepened.

Celsius said the optimised plan scheduled 90.0Mt of the ore reserve for extraction, with 40.3Mt "sterilised" under the current plan due to social boundary constraints, including areas beneath communities and infrastructure, and could be reconsidered later subject to optimisation and engagement.

"The MCB definitive feasibility study marks a significant milestone, positioning the MCB Project as a leading near-term copper-gold development opportunity in the Philippines," said Neil Grimes, Celsius executive director.

"The study demonstrates a technically robust and economically enhanced project, with competitive capital intensity and operating costs.

"The company is progressing funding and offtake discussions to advance the project toward a final investment decision and construction."

Patrique Jane Duran, chief operations officer of Makilala Mining Company, which owns and operates the project, said the completion of the DFS represented a major milestone and value inflection point, confirming it as a "long-life, technically robust and finance-ready" underground operation with "strong economics" and a "clear" development plan.

"With the DFS now complete, the Company is focused on advancing funding discussions, finalising execution planning and progressing toward a final investment decision," she added.

" Management believes the MCB Project is well positioned to deliver sustainable shareholder returns and to become a significant new copper-gold producer in the Philippines, aligned with responsible mining and ESG principles."

Celsius said the Mines and Geosciences Bureau issued a mineral production sharing agreement to MMCI on 15 March 2024 covering an initial 25-year term with an option to renew for a further 25 years.

The company said it was working towards a final investment decision targeted for the first quarter of this year, with commissioning and first concentrate expected in the second and third quarters of 2028 respectively, and highlighted potential upside from resource extensions at depth, staged recovery of near-surface material and a possible throughput expansion to around 3.0Mtpa that were not included in the base-case valuation.

Celsius holds a 40% working interest in MCB through MMCI after conditionally agreeing in 2023 to transfer a 60% interest to Sodor subject to outstanding conditions.

At 1119 GMT, shares in Celsius Resources were up 16.67% at 1.05p.

Reporting by Josh White for Sharecast.com.