Bankable Feasibility Study

Capital & Operating Costs

Capital Costs

  • The capital cost estimates for the project have a base date of 19 November 2013 and are expressed in United States dollars. They assume a diesel price of US$0.88/l, USD = 1.11 AUD and USD = 11,250 Rupiah (IDR). They do not include accuracy provision or contingency.

Table 2

Operating Costs

  • The full production and life of mine operating costs for the Wetar Copper Project are as follows:


Customers and Off-Take Partners

Wetar copper cathode is currently sold under off-take contracts with Tennant Metals Pty Limited and Standard Bank PLC, each for 40% of the life-of-mine production with the remaining 20% committed to Daewoo International Corporation.

All product to date has been sold into Asian markets at a premium to LME copper prices reflecting spot premiums in Asia and the quality of the cathode. Sales to Indonesian markets have commenced.


Financial Analysis

Key financial assumptions used in the financial analysis

  • Copper price for the base case is $7,000 life of mine which is in line with the forward copper curve as at 15 November 2013.
  • Discount rate 10% (approximates Company’s weighted average cost of capital, WACC);
  • IDR/USD exchange rate 11,250;
  • Diesel fuel price US$0.88/litre, MFO fuel price US$0.71/litre;
  • Tax rate of 25%, royalty rate of 4%.

The project is robust at a number of copper price scenarios with short payback periods, strong cash generation and significant NPV10 across a range of copper prices. NPV on an ungeared basis varies ~$80m for every $1,000 change in the copper price.


The annual project EBITDA for the project at capacity production above a $6,000/t copper price equalled Finders’ market capitalisation at the date of the BFS.




Higher grades and recoveries achieved during the demonstration phase have the potential to add a full year’s production and US$70m to the project NPV. Given the high operating margins the project is not overly sensitive to changes in operating or capital costs.

Impact on NPV (US$m)


Key cost drivers for the Wetar Copper Project include cathode produced and tonnes mined.

A summary of the key cost items is set out below: