The 2022 PEA was based on new metals prices of $1.37/lb. for zinc and $0.96/lb. for lead, and a higher indicated resource of 15.8 million tonnes grading 4.17% zinc and 1.53% lead and inferred resource of 47.2 million tonnes grading 4.43% zinc and 1.68% lead. Compared to the 2020 PEA, mineral resources increased by 22% and 26% for the indicated and inferred categories, respectively.
With the update, Pine Point’s after-tax net present value is now estimated at $602 million (using an 8% discount), with an internal rate of return of 25%. The after-tax payback period is 3.8 years.
Over a projected 12-year mine life, Pine Point is expected to produce an annual average of 329 million lb. zinc and 141 million lb. lead, generating gross revenue (after royalty) of C$5.62 billion. Adjusting for cost inflation (12% inflation factor), the pre-production capex has risen to C$653 million. Sustaining capex has also increased as the mine life was…
