Funding and Market Risks Loom as Centaurus Targets Q1 2026 FID for Jaguar Nickel Sulphide Mine

Jaguar Project’s Enhanced Economics and Strategic Positioning

Centaurus Metals Limited (ASX: CTM) has announced the results of its Jaguar Value Engineering Process (JVEP), delivering a compelling update to the feasibility study for its 100%-owned Jaguar Nickel Sulphide Project in Brazil’s Carajás Mineral Province. The JVEP confirms a robust 15-year open pit mine life, producing a high-grade nickel concentrate averaging over 30% nickel, at some of the lowest operating costs globally.

The updated JORC Ore Reserve stands at 52 million tonnes grading 0.78% nickel, containing 406,100 tonnes of nickel metal. The mine plan optimises waste stripping with a strip ratio of 4.9:1, supporting an average annual nickel production of 22,600 tonnes over the first seven years. This translates into free operating cash flows averaging US$169 million per annum during this period.

Low-Cost Production Backed by Renewable Power

Jaguar’s operating costs are forecast to be in the first quartile globally, with a C1 cash cost of US$2.67 per pound of nickel and an all-in sustaining cost (AISC) of US$3.55 per pound. These low costs are driven by several factors including access to renewable power at approximately US$0.04 per kWh via Brazil’s national grid, the production of a very high-grade nickel concentrate that reduces logistics costs, and the use of conventional mining and processing methods that minimise operational risk.

The project’s capital intensity is also favourable, with pre-production capital expenditure estimated at US$380 million, including pre-strip mining and contingency allowances. The post-tax net present value (NPV8) is A$1.15 billion, with an internal rate of return (IRR) of 34% and a capital payback period of just 1.8 years from first concentrate production.

Strong ESG Credentials and Permitting Milestones

Jaguar is positioned as a sustainable nickel project with a low carbon footprint, benefiting from 100% renewable electricity supply and a life-of-mine greenhouse gas emission intensity forecast to be lower than 90% of global nickel production. The project has secured all key environmental approvals, including the Installation Licence (LI) for construction and the Preliminary Licence (LP), with the formal Mining Lease approval expected imminently in Q2 2025.

Centaurus has also engaged extensively with local communities, implementing training programs and social initiatives to foster local employment and support. The project’s location in the well-established Carajás Mineral Province provides access to skilled labour and infrastructure, further de-risking development.

Pathway to Final Investment Decision and Underground Upside

With the JVEP complete, Centaurus is advancing strategic partnering and financing discussions, supported by Standard Chartered Bank and debt advisor Orimco. The company targets a Final Investment Decision (FID) in Q1 2026, aiming to commence construction shortly thereafter and achieve first production in the second half of 2028.

Beyond the open pit, a conceptual underground mining study is underway, evaluating the potential to extend mine life and enhance feed grade. The underground resource totals 21.5 million tonnes at 1.46% nickel, representing significant upside potential not yet included in the current economic model.

Strategic Importance in Global Nickel Supply

Jaguar stands out as one of the largest undeveloped nickel sulphide projects globally and a rare source of unencumbered nickel concentrate outside Indonesia, which dominates global supply. Its competitive cost structure and sustainability profile make it an attractive supplier for the growing electric vehicle battery market, where demand for Class-1 nickel is expected to surge.

Centaurus’ Managing Director, Darren Gordon, emphasised the project’s robust fundamentals and strategic value, highlighting its ability to compete with Indonesian nickel production while offering a significantly lower carbon footprint.