Newcrest Mining Limited (ASX: NCM) just updated the market on the Wafi-Golpu project in Papua New Guinea, where the company has a 50% interest in a joint venture with South African miner Harmony Gold.
A new feasibility study quantifies the mine's annual production is 266,000 ounces of gold and 161,000 tonnes of copper, revising upwards the estimates from a preliminary study conducted in 2016.
The Wafi-Golpu project is in the advanced stages of exploration, but it will take around five years from the grant of the mining lease – and a US$2.8 billion (circa AU$3.7 billion) initial investment – before the first ore is extracted from the site.
However, the US$13 billion (AU$17 billion) free cash flow expected over the 28 years' life of the mine, with an internal rate of return of 18% is something to look forward to.
Newcrest's share price is up 0.4% to $19.81 at the time of writing, after falling 8.6% over the course of last week on the news of the collapse of a tailings dam wall at Newcrest's flagship Cadia mine, which is poised to have a negative impact on FY 2018 production.
