On 22 September 2026, Meridian Mining plc disclosed the outcomes of the definitive feasibility study (DFS) for its Cabaçal deposit in Mato Grosso, Brazil. The study, prepared by Ausenco do Brasil Engenharia Ltda and Ausenco Engineering Canada ULC with support from GE21 Consultoria Mineral Ltd upgrades the earlier March 2025 preliminary feasibility and confirms that the project now ranks among the most attractive open-pit VMS developments worldwide.
The base-case scenario adopts spot metal prices recorded at the London close on 10 September 2026 – $3,570/oz for gold, $5.03/lb for copper and $50.17/oz for silver. Under these assumptions the net present value at a 5% discount rate (NPV5) reaches US$2.092 billion while a spot-price sensitivity pushes NPV5 to US$2.902 billion. Corresponding internal rates of return are 107.6% and 134.7% respectively, and the payback period shrinks to 0.9 and 0.7 years. The NPV5-to-Capex ratio stands at 6.5-times in the base case and climbs to 9.0-times at spot prices, underscoring the project’s economic resilience.
Economic highlights and cash-flow profile
The study projects total life-of-mine (LOM) revenue of US$5.4 billion and an after-tax free cash flow of about US$2.9 billion. All-in-sustaining costs (AISC) are estimated at US$1,056 per ounce AuEq. During the first five years, average annual production is expected to hit 183,526 AuEq ounces with an AISC of US$715 per ounce AuEq generating roughly US$413.8 million of after-tax free cash flow each year.
Initial capital expenditure totals US$322 million a figure that already incorporates a 10% contingency, applicable tax credits and pre-investment needed to scale throughput to 4.5 Mtpa from year 4 onward. An additional US$56 million is earmarked for expansion, while sustaining capital over the mine’s life is forecast at US$74 million. Off-site civil works have begun, and a licence for constructing the required power line has been granted, indicating that the project is moving from study to implementation.
Resource base and production assumptions
The Cabaçal deposit contains 56 Mt of ore and 79.3 Mt of waste delivering a strip ratio of 1.4:1 within the open-pit shell. The LOM forecast includes 983,537 ounces of gold180,634 tonnes of copper and 1,779,720 ounces of silver. Metallurgical recoveries are strong – 89.3% for gold, 92.8% for copper and 74.3% for silver – translating into an average annual gold-equivalent (AuEq) output of 112.9 koz. The model uses a cut-off grade of 0.117 g/t AuEq and assumes a discount rate of 5% for valuation.
Operating costs break down to US$22.41 /t milled material, or US$836.79 per ounce AuEq, with the largest components coming from mining (US$9.93/t), power (US$2.69/t) and concentrate logistics (US$2.20/t). A tax credit of US$1.88 per ounce AuEq further enhances the cash-flow picture. The NPV5-to-Capex ratio of 6.5-times indicates that every dollar invested is expected to return more than six dollars in present-value terms.
Management commentary and forward outlook
Meridian’s chief executive, Mr. Gilbert Clark emphasized the significance of the results, stating: “What a tremendous result has been achieved. The DFS delivered a NPV5 exceeding two billion dollars, an IRR over one hundred percent and a payback of less than one year. Our NPV5-to-Capex ratio of 6.5 times is a testament to the compelling economic potential of the Cabaçal project.” He added that the study is based on a conservatively engineered design that can be financed and constructed, and highlighted pre-construction investments of US$15.9 million already in place.
Looking ahead, Meridian plans a live webcast on 22 September 2026 at 15:00 UK time (10:00 EST) to walk investors through the findings and answer questions. The company is also advancing financing discussions and expects to secure the remaining capital required to bring the mine into production, positioning Cabaçal as a potential “near-term” VMS gold-copper-silver operation in South America.
