CentaurusMeta's decision to reshape Jaguar DFS

CentaurusMeta Limited (ASX: $CTM) has announced a strategic decision to reshape the ongoing Feasibility Study for its Jaguar Nickel Project in response to the changed nickel market conditions. The decision involves deferring the downstream refinery and focusing on developing the Jaguar Nickel Project in two phases, with the first phase concentrating on the production of a nickel sulphide concentrate, while the second phase involving a downstream nickel sulphate refinery will be considered in the future if market conditions allow.

Executive Commentary on Reshaping Jaguar DFS

The changes in the nickel market have led CentaurusMeta to adopt a pragmatic and phased approach to the Jaguar Project development. The decision to defer the downstream component of the study aims to deliver outcomes consistent with the company's core objectives of maximizing value, minimizing equity dilution for existing shareholders, and achieving the best possible risk-adjusted returns. The company retains the optionality to develop the downstream second phase of the Project in the future when supported by market conditions and as the market for low carbon emission Class-1 nickel matures to support the inclusion of a genuine green premium in its pricing structure.

Summary of CentaurusMeta's Announcement

CentaurusMeta's reshaping of the Jaguar DFS to focus on the concentrate project reflects the company's commitment to adapting to the significantly changed market landscape. The decision to defer the downstream refinery and concentrate on the initial nickel concentrate-only project is aimed at significantly reducing capital costs, ensuring robustness throughout the commodity price cycle, and delivering strong financial returns. The company plans to complete the Concentrate Feasibility Study by the end of June 2024, which is expected to demonstrate robust economics underpinned by low operating costs. CentaurusMeta will continue to monitor cash expenditures, implement cost-saving initiatives, and focus on value-adding growth and exploration initiatives associated with its other projects.