Arctic project remains robust despite capital and operating cost jump

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Arctic project remains robust despite capital and operating cost jump
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Arctic project capital and operating cost jump, but despite high inflation, economics remain robust - Trilogy_Alaska / South_32 copper cobalt zinc lead gold silver Alaska USA mining criticalminerals inflation

The Arctic base and precious metals project, in Alaska, continues to be robust, even in the high inflationary environment that has seen its initial capital expenditure forecast rise by 30% to $1.12-billion.

Operating cost increased by 18% from the 2020 feasibility study to $59.83/t milled, while initial capex jumped from $905.6-million in 2020 to $1.18-billion.The latest feasibility study yielded an aftertax net present value of $1.11-billion, compared with $1.13-billion, and an aftertax internal rate of return of 22.8%, compared with 27.1% in 2020.

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