From the PFS Sept 8 Prudent Financing Plan and Disciplined Capital Allocation
As part of Hudbay’s disciplined financial planning approach to Copper World, the company has introduced a three prerequisites plan (“3-P”), including specific leverage targets that it would need to achieve prior to making an investment decision in the project:
- Permits – receipt of all state level permits required for Phase I
- Plan – completion of a definitive feasibility study with an internal rate of return of greater than 15%
- Prudent Financing Strategy – multi-faceted financing strategy including
- a committed minority joint venture partner;
- a renegotiated precious metals stream agreement optimized for the current project;
- net debt to EBITDA ratio of less than 1.2 times;
- a minimum cash balance of $600 million; and,
- limited non-recourse project level debt of up to $500 million.