Meridian Mining Plc, listed on exchanges in London and Toronto, released results from a definitive feasibility study on its Cabaçal project located in Brazil’s Mato Grosso state. The comprehensive assessment valued the gold-copper-silver deposit at more than $2 billion, prompting a 10% increase in the company’s share price to 109p in early trading.
The study calculated the project’s after-tax net present value at $2.09 billion using a 5% discount rate, alongside an internal rate of return of 108%—substantially above typical industry benchmarks for mining developments. The company estimated capital expenditure of $322 million, translating to a value-to-cost ratio of 6.5 times. Development costs would be recovered within 0.9 years, according to projections. Over an estimated mine life of 13.9 years, Cabaçal was forecast to generate total revenue of $5.4 billion, with average annual free cash flow reaching $414 million during the initial five-year period.
Operational metrics indicated all-in sustaining costs of $1,056 per ounce of gold across the mine’s life. The study’s baseline assumptions incorporated a gold price of $3,570 per ounce. Under current spot market pricing, the net present value increased to $2.9 billion with an internal rate of return reaching 135%. Higher-grade ore scheduled for early production phases was expected to drive stronger cash generation in the project’s initial years.
Meridian has been developing the Cabaçal deposit since 2021. Chief executive Gilbert Clark indicated the study’s findings position the project as a potential major development globally. The company stated that preconstruction activities were progressing, with executed contracts valued at $15.9 million and ongoing discussions with approximately 30 potential lending partners. The definitive feasibility study represents an update to an earlier technical assessment completed in March 2025, incorporating improved economics, an expanded mineral reserve, and an optimized mine plan.
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