Key Highlights

  • In June 2019, Los Andes Copper Ltd. (“Los Andes” / “company”) announced results of an update Preliminary Economic Assessment (“PEA”) on its 100% owned Vizcachitas copper-molybdenum porphyry project located in central Chile.
  • Although the PEA was delayed by over a year, we were pleased with the results as the 2019 study showed significant improvements in all of the key metrics over the previous PEA completed in 2014. LA’s share price is up 60% since release of the new PEA.
  • The project’s total copper equivalent measured and indicated resource increased 30% to 12.8 Blbs, and the total copper equivalent inferred resource increased 139% to 6.7 Blbs.
  • The base-case scenario showed an After Tax – Net Present Value (“AT-NPV”) at 8% of US$1.80 billion, with an After Tax – Internal Rate of Return (“AT-IRR”) of 21%, versus the 2014 PEA’s US$274 million and 9.5%, respectively.
  • The initial CAPEX is estimated at US$1.88 billion versus the 2014 PEA’s US$2.9 billion for the base-case scenario.
  • The updated cash cost estimate is US$1.58 / lb (LOM – life of mine), and a much lower $1.36 / lb in the first 8 years versus $1.69/lb (LOM) in the 2014 PEA.
  • In the first half of 2019, the company restructured and strengthened its management team. The company appointed a new Executive Chairman, Project Director, and a Director of Corporate Affairs and Sustainability.
  • Management’s next goal is to complete a Pre-Feasibility Study (“PFS”) by Q4-2020.
  • Management, board members and key institutions hold approximately 173 million shares, or 63.5% of the total outstanding shares.

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