Latitude 66 Scoping Study Puts KSB Gold-Cobalt NPV at US$485M With 85% IRR
Key Takeaways
- The 2026 Scoping Study for the Latitude 66 KSB Gold-Cobalt Project confirms a post-tax NPV8% of US$485m and an IRR of 85% at a conservative base case gold price of US$3,500/oz — rising to US$753m NPV and 122% IRR at spot pricing of US$4,500/oz.
- KSB's all-in sustaining cost of US$1,283/oz gold places it in the first quartile globally, with initial capital of just US$130m and a payback period of 8 months at current spot gold prices.
- Over 90% of the production target is underpinned by Indicated Mineral Resources, with more than 95% of early-year ounces from the highest-confidence resource category — directly supporting the payback period reliability.
- KSB's projected annual cobalt output of 475 tonnes would represent approximately 25% of mined cobalt from within the EU, positioning the project as strategically significant under the EU's Critical Raw Materials Act at a time when DRC export quotas have driven cobalt prices up 130% in 2025.
- The board has approved direct advancement to a Prefeasibility Study, with drilling on near-mine extensional targets commencing shortly and FLEM surveys defining a down-dip conductive target of 320m strike × up to 650m down-dip — potentially larger than the existing K1 resource footprint.
KSB scoping study confirms a high-margin, low-cost gold-cobalt operation in Northern Finland
Latitude 66 Limited (ASX: LAT) has released its 2026 Scoping Study for the KSB Gold-Cobalt Project in Northern Finland, confirming the project’s potential as a standalone, commercially viable mining operation with strong economic metrics. At base case pricing of US$3,500/oz gold, the study estimates a post-tax NPV8% of US$485m and a post-tax IRR of 85%, rising to a post-tax NPV8% of US$753m and an IRR of 122% at spot pricing of US$4,500/oz gold. The study outlines a 7.5-year mine life producing an average of 65,000oz gold and 475 tonnes of cobalt in concentrate per year, with the board approving advancement directly to a Prefeasibility Study (PFS).
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By the numbers — what the scoping study delivers
| Metric | Unit | Base Case | Spot Price | Notes |
|---|---|---|---|---|
| NPV8% (post-tax) | US$m | 485 | 753 | Au US$3,500/oz base; US$4,500/oz spot |
| IRR (post-tax) | % | 85 | 122 | |
| Initial Capex | US$m | 130 | 130 | |
| AISC (Au only) | US$/oz | 1,283 | 1,283 | First quartile globally |
| AISC (Au equivalent) | US$/oz Au eq | 1,186 | 1,186 | |
| Capital payback | Months | 12 | 8 | |
| LOM free cash flow (post-tax) | US$m | 801 | 1,213 | |
| Annual Au production (avg) | oz | 65,000 | 65,000 | |
| Annual Co production (avg) | tonnes | 475 | 475 | |
| Mine life | Years | 7.5 | 7.5 |
Grant Coyle, Managing Director
“The 2026 Scoping Study confirms our flagship KSB Gold-Cobalt Project in Northern Finland as a standout, high-margin asset featuring low capital intensity and a rapid 8-month payback period based on the current spot gold price. With over 90% of early production sourced from the Indicated resource category, we have a high-confidence foundation to advance the KSB Project directly into a Prefeasibility Study.”
What makes KSB stand out — the dual gold-cobalt advantage
The KSB Project is not a single-commodity story. Gold underwrites the project’s financial viability, while cobalt adds a strategic dimension that connects the project directly to Europe’s critical minerals agenda. Understanding both components is important for assessing the project’s full value proposition.
Gold as the economic engine
KSB’s all-in sustaining cost (AISC) of US$1,283/oz gold places it in the first quartile globally, meaning its operating costs are among the lowest quarter of gold producers worldwide. That cost discipline is what creates the wide margin that drives the project’s economics.
The study’s base case gold price assumption of US$3,500/oz is conservative relative to recent market conditions. According to the scoping study, the 12-month average gold price to the date of publication was approximately US$4,300/oz, and spot pricing at the time of publication was approximately US$4,500/oz, meaning the base case is well below the recent 12-month average. That pricing cushion is a meaningful buffer for investors assessing downside risk.
Cobalt as the strategic differentiator
Cobalt has become a strategically sensitive commodity in Europe, and the timing of the KSB study reflects that shift. In early 2025, the Democratic Republic of the Congo (DRC), which accounted for approximately 73% of global mined cobalt production in 2025, introduced an initial suspension of cobalt exports. That suspension was later replaced by a quota-based system from 16 October 2025, capping DRC cobalt exports at 96,600 tonnes in 2026.
The impact on pricing was significant. Cobalt metal prices increased by approximately 130% during 2025. The KSB study applies a base case cobalt price of US$40,000/t, which the announcement notes is approximately 30% below the spot price of US$56,000/t at the time of publication — another conservative pricing assumption that adds further upside optionality.
Why does European supply matter so much right now? A few key reasons:
- Cobalt is classified as a strategic raw material under the EU’s Critical Raw Materials Act (CRMA) and as a Critical Mineral by NATO
- KSB’s projected annual cobalt output would account for approximately 25% of mined cobalt from within the EU
- EU cobalt demand is driven by electric vehicle battery production and the broader clean energy transition
- Gold production is expected to underpin the economic stability of the cobalt supply from the project
Mining plan, resource confidence, and path to production
High-confidence resource underpins the production target
The production target is underpinned by 90% Indicated Mineral Resources and 10% Inferred resources over the life of mine. That distinction matters to investors: Indicated resources carry higher geological confidence than Inferred, which translates directly to greater reliability in production forecasts. In the first four years of operation, well in excess of 95% of mined ounces are from the Indicated category, meaning the payback period is supported by the highest-confidence portion of the resource.
The global mineral resource stands at 7.3Mt @ 2.7g/t Au for 650,000oz gold and 0.08% Co for 5,840t cobalt.
Simple, conventional operations with expansion headroom
The mining configuration is straightforward. Open pit operations are planned across the K1, K2, and K3 deposits, with K1 transitioning to underground mining below the pit. The average strip ratio (the ratio of waste rock removed per tonne of ore) is 8:1 over the life of mine. A conventional Carbon in Leach (CIL) process plant, rated at 750ktpa, evaluates recoveries of 92.5% for gold and 70% cobalt to a 1.8% cobalt concentrate.
The process plant is planned to be located 48km south of the mine site near Kuusamo, on municipality-owned land. The site has direct access to the Finnish national power grid via a 110kV substation within approximately 4km, with potential for 100% renewable power.
A notable feature of the study is the low incremental capital required to expand production capacity. The scoping study assessed four expansion scenarios:
- 0.75Mtpa — US$130m (base case)
- 1.0Mtpa — US$143m
- 1.25Mtpa — US$156m
- 1.5Mtpa — US$169m
The scoping study notes that a 1Mtpa process facility is estimated to cost an additional US$15m. Expansion cases will be evaluated as part of the PFS workstream.
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Next steps — drilling commences and PFS underway
The board has approved progression of the KSB Project to a Prefeasibility Study (PFS), subject to ongoing funding. Drilling is expected to commence shortly on near-mine extensional targets, both down-dip and along-strike of the K1 Indicated and Inferred Resource.
Recent Fixed Loop Electromagnetic (FLEM) surveys have added further exploration significance to the near-mine programme. Modelling has defined two substantial down-dip conductive plates of approximately 2,466S and 1,040S northwest of K1, together with an additional 86S conductor along strike. The combined down-dip target has approximate dimensions of 320m strike × up to 650m down-dip, representing a geophysical footprint comparable to, and potentially larger than, the approximately 380m × 390m footprint of the existing K1 Mineral Resource.
The PFS workstreams will also evaluate expansion throughput cases, potential recovery of uranium (as uraninite), and water management optimisation at both the mine site and process plant. On funding, the scoping study estimates a pre-production capital requirement of approximately US$130m. The announcement notes the company has received strong interest from European critical mineral funding groups regarding financing the KSB Project, though there is no certainty that funding will be available when required, nor as to the form such capital raising may take.
For investors exploring how European financing mechanisms could apply to KSB’s pre-production capital requirement, our detailed coverage of EU critical mineral funding for Finnish projects outlines the specific funding bodies, eligibility criteria, and precedent transactions that are most relevant to a project of this scale.
Grant Coyle, Managing Director
“What makes KSB unique is its strategic dual-value proposition with robust gold economics delivering a bottom-quartile all in sustaining cost, while simultaneously positioning Latitude to become a key European cobalt supplier in alignment with the EU’s Critical Raw Materials Act.”
Latitude 66 Limited is a mineral exploration and development company focused on gold and critical mineral projects in Finland and Western Australia. Its flagship asset is the KSB Gold-Cobalt Project in Northern Finland, supported by a secondary focus on the Laverton Gold Project in Western Australia.
The Laverton Gold Project in Western Australia adds a second exploration front for Latitude 66, with recent drilling confirming two new 500m gold lodes at the Tin Dog prospect that expand the company’s gold inventory beyond its Finnish flagship.
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