Santo Domingo / Copper and cobalt

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Santo Domingo is a high grade, fully permitted copper/cobalt project in Chile, owned and operated by Capstone Copper.

Stage

Development

Commodity

Copper and cobalt

Operator

Capstone Copper

Location

Chile

Royalty rate and type
2% NSR

Balance sheet classification
Royalty Intangible

What we own

The Group owns a 2.0% NSR royalty over the Santo Domingo project in Chile, owned and operated by Capstone Copper. The Company’s royalty area covers the highest copper grade portion of the mine plan which is expected to be mined during the initial six to seven years of production.

Operation

The Santo Domingo project is expected to be an open-pit copper mine with iron and gold production. It is owned by Capstone Copper and located in the Atacama region of Northern Chile, a well-established mining region, 35km north-east of Capstone Copper’s Mantoverde mine.

Average annual production is expected to be approximately 140Mlbs of copper, 4.2Kt of 65% pellet feed iron ore concentrate and 10.4Mlbs of cobalt. Total reserves are estimated to be 392Mt of copper at 0.30% (as per Capstone Copper Santo Domingo Project Technical Report) with an expected mine life of over 18 years.

Capstone Copper has also identified a meaningful cobalt opportunity that has the potential to turn Santo Domingo into one of the world’s largest and lowest cost cobalt producers. Cobalt production over the life of mine is forecast to total 10.4Mlbs per annum, the credits of which reduce the total mine’s C1 cash costs per pound of payable copper to ($1.56) on a by-product basis.

Copper and iron production is expected to commence as early as 2024 with cobalt production due to start two years following start-up.
 

Key facts

7th

Potential to be the 7th largest cobalt producer in the world, and 2nd largest outside the Democratic Republic of Congo

18

18 year mine life with extension potential

140m

Average annual production is expected to be ~140 million lbs of copper, 4,200 tns of 65% pellet feed iron ore concentrate and 10.4 million lbs of cobalt