Celsius Resources Ltd (ASX:CLA, AIM:CLA)’s MCB Project has the potential to significantly impact the energy transition sector.
The project, in the Philippines, boasts over 1.6 million tons of contained copper and 1.3 million ounces of contained gold.
That's important as electrification is a key driver in the global energy transition, with copper's unique properties of conductivity and ductility positioning it as a crucial material for electrical applications.
Low-carbon technologies typically require significantly more metal than their high-carbon counterparts. For instance, offshore wind installations demand approximately three times more copper per gigawatt of capacity than coal-fired power plants. Furthermore, an upper-end electric vehicle contains around 78 kilograms of copper, starkly contrasting with the 22 kilograms used in a comparable gasoline-powered model.
There is thus a large requirement for copper as we move further to a net zero economy.
MCB Project stacks up
The MCB project has quickly secured its necessary permits and is expected to start construction within the year.
Initial extraction, spanning the first 10 years, will focus on high-grade copper with concentrations exceeding 1%.
The project is projected to generate a net cash flow of US$1.5 billion over its lifespan, with a net present value (NPV) of US$393 million and an internal rate of return (IRR) exceeding 30%.
Additionally, the payback period is estimated to be a swift 2.3 years.
Strategically positioned near major manufacturing hubs like China, India, and Japan, as well as having access to an in-country smelter, the MCB project is well-placed to leverage the energy transition super cycle.
Celsius also has a pipeline of future copper projects to meet the increasing demand for this essential metal.
The MCB project is presented as more than just a mining venture but a pivotal development for a sustainable and cleaner future.