Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Maronan Metals shares surged 23.3% to AUD 0.37 after releasing a Preliminary Economic Assessment (PEA) for its Maronan Starter Zone Project.

  • The standalone processing option demonstrates a Base Case NPV8 of AUD 377 million, with life-of-mine free cash flow of AUD 683 million and IRR of 37%.

  • Toll treatment provides a lower upfront capital requirement of AUD 98 million, with an NPV8 of AUD 362 million, free cash flow of AUD 595 million, and IRR of 67%.

Maronan Metals Ltd (ASX:MMA) saw its share price increase by 23.3% to AUD 0.37 during the trading session on 23 September 2025, following the release of results from a Preliminary Economic Assessment (PEA) for the Starter Zone of its 100% owned Maronan Silver-Lead-Copper-Gold Project.

The PEA outlines two potential development pathways – construction of an onsite standalone processing facility or utilising toll treatment. Both scenarios are based on a mining and processing throughput of 1.2 million tonnes per annum (Mtpa) over a 10-year life of mine.

Standalone Processing Plant Economics

Under the Base Case scenario, the onsite standalone processing option is forecast to deliver a net present value at an 8% discount rate (NPV8) of AUD 377 million. The project is expected to generate life-of-mine free cash flow of AUD 683 million, with an internal rate of return (IRR) of 37%.

The estimated pre-production capital expenditure is AUD 266 million, while the all-in sustaining cost (AISC) per equivalent silver ounce produced is AUD 30.18.

At current spot prices for silver, lead, copper, and gold (as of 19 September 2025), the standalone processing option shows an improved NPV8 of AUD 533 million and life-of-mine free cash flow of AUD 917 million. On a silver-only spot price basis, the project’s NPV8 is estimated at AUD 518 million with free cash flow of AUD 897 million.

Toll Treatment Option

The regional toll-treatment pathway requires lower upfront capital of AUD 98 million. It is projected to deliver a life-of-mine free cash flow of AUD 595 million, with an NPV8 of AUD 362 million and a higher IRR of 67%.

The AISC per equivalent silver ounce is AUD 36.43, and the payback period is approximately two years, compared to four years under the standalone processing route. Both options are underpinned by a significant portion of Indicated Mineral Resources—82% for the onsite plant and 92% for the toll treatment option.

Project Potential and Resource Profile

The Starter Zone mine schedule incorporates a mix of 70% Indicated and 30% Inferred Mineral Resources. Over the life of mine, expected concentrate production includes 23 million ounces of silver, 280,000 tonnes of lead, 5,800 tonnes of copper, and 34,000 ounces of gold.

Silver is anticipated to contribute 53% of total project revenue after payabilities. The company emphasised that the Starter Zone represents only 22% of the global silver-lead and less than 10% of the copper-gold resources at Maronan.

Maronan Metals considers the standalone processing option as its preferred development pathway to leverage future growth from the wider Maronan Project. The company is advancing financing discussions to support ongoing studies, a Definitive Feasibility Study (DFS), and ultimately a Financial Investment Decision (FID).