Meridian Mining (LON: MNO) has joined the FTSE 250 after announcing a landmark Definitive Feasibility Study (DFS) for its Cabaçal gold-copper-silver project in Brazil.

The DFS, released in September, outlined a project with an after-tax net present value of US$2.09 billion, an internal rate of return of 107.6% and initial capital expenditure of US$322 million. Perhaps the most striking figure is the projected cost of production. Cabaçal is expected to produce an average 183,526 ounces of gold equivalent a year during its first five years, at an all-in sustaining cost (AISC) of just US$715 per ounce. That compares with a life-of-mine average production rate of around 113,000oz AuEq, with AISC of US$1,056/oz.

We filmed Meridian Mining at their IPO in May this year, and CEO Gilbert Clark gave us an overview of the business. Watch below:

So how does Meridian compare with established precious-metals producers already in the FTSE 250?

The two most obvious comparators are Pan African Resources and Hochschild Mining.

Pan African produced a record 272,310 ounces of gold in FY26, at an AISC of US$1,867/oz. It is guiding to production of 280,000-302,000oz in FY27, with AISC of US$2,075-US$2,175/oz.

Hochschild, meanwhile, is guiding to 300,000-328,000oz of attributable gold equivalent production in 2026, with AISC guidance of US$2,380-US$2,500/oz AuEq.

On the headline numbers, Meridian’s projected Cabaçal costs are therefore significantly lower. Even its US$1,056/oz life-of-mine AISC is well below current cost guidance from both established producers. Cabaçal also isn’t a pure gold operation. Its production includes significant copper and silver, with revenues from those metals contributing to the AuEq calculation.

Meridian’s shares closed at around 124.5p on 30 September, giving the company a market capitalisation of roughly £580-600 million. That compares with approximately £2.4–2.5 billion for Pan African Resources and around £2.7 billion for Hochschild.

The US$322 million construction requirement is now one of the most important parts of the story. Meridian is progressing discussions with potential financing providers as it moves towards a final investment decision.

We are organising a group webinar, hosted by CEO Gilbert Clark at 9am on Wednesday 14th October. If you would like to attend, please email Nick Peters at nicholas.peters@fmp-ir.co.uk or call him on 07909 972 080