Meridian Mining UK Societas Announces Strong Economic Profile for Cabaçal Project
Meridian Mining UK Societas, a London‑based materials company listed on the Frankfurt Stock Exchange, has released a detailed presentation of its flagship Brazilian project, Cabaçal, highlighting a compelling economic case that could reshape the firm’s outlook.
Project Overview
Cabaçal sits in Mato Grande do Sul, within a prolific VMS (volcanic‑magmatic sulphide) belt that hosts copper, gold and silver. The resource is already quantified at 41.7 million tonnes with a mineral composition of:
| Mineral | Grade | Estimated Metal |
|---|---|---|
| Gold (Au) | 0.63 g/t | ~850 000 ounces |
| Copper (Cu) | 0.44 % | ~184 000 t |
| Silver (Ag) | 1.64 g/t | ~2.2 million ounces |
The company emphasizes the “triple‑resource” nature of the deposit: copper serves as the “engine” for electrification, gold provides a cash‑flow engine, and silver acts as a turbocharger that can deliver additional margins.
Economic Highlights
- Net Present Value (NPV): Near USD 1 billion when discounted at a 10 % hurdle, underscoring the project’s strong upside potential.
- Capital Expenditure: An initial CAPEX of USD 248 million is projected, which is modest relative to the scale of the resource and comparable projects in the region.
- Payback Period: The project’s cash‑flow profile yields a payback of approximately 17 months, an exceptionally short period for a metallurgical development of this size.
- All‑In‑Sustaining Cost (AISC): Estimated at USD 742 per ounce of gold (≈ USD 1.46 per pound of copper), positioning Cabaçal among the lowest‑cost copper projects worldwide.
- Cash‑Flow Production: Over the first five years, the plan calls for the extraction of about 141 000 ounces of gold and 71 million pounds of copper annually, ensuring a balanced mix that supports both cash generation and long‑term growth.
Liquidity and Funding Position
Meridian Mining reports a provisional Cabaçal licence has been granted, and the company currently maintains > USD 60 million in liquid assets. This liquidity cushion is expected to support the early‑stage development and sustain operations until the first cash‑inflows materialise.
The firm also anticipates a financial statement for 2026 that will reflect the project’s progression and the associated capital structure changes. The management team is actively engaging with investors and financial partners to secure the necessary funding to maintain the project’s timeline.
Market Reaction and Outlook
With a market capitalization of EUR 332 million and a share price hovering around EUR 0.80, the market has responded cautiously yet positively to the announcement. Analysts note that the combination of low operating costs, high-grade resources, and a rapid payback period could make Meridian Mining an attractive play for investors seeking exposure to the growing demand for copper driven by electrification, grid upgrades, and data‑centre expansion.
The company’s emphasis on the “gold‑cash‑motor / silver‑turbo” logic aligns with the current commodity cycle, where investors are increasingly valuing projects that deliver both immediate cash‑flow and long‑term commodity upside.
Conclusion
Meridian Mining UK Societas’ latest disclosure positions the Cabaçal project as a potentially high‑yield development in Brazil’s mining landscape. The robust NPV, modest CAPEX, and rapid payback period present a compelling case for both the company’s shareholders and the broader investment community. As the project moves from exploration into production, market participants will be keenly watching how the firm navigates financing, execution, and the broader commodity dynamics that will shape its future trajectory.
