What you need to know: • Moon River published an updated PEA on the Davidson project in BC. • Today’s PEA has substantially improved economics compared to the 2024 PEA based on the inclusion of Tungsten and Copper into the mine plan, as well as increased annual throughput, amongst other updates. • The PEA depicted a highly profitable operation with an NPV8% of $1.0B and IRR of 32% with a short payback period of 2.3 years. • This follows the Nov 21st announced PEA on MOO’s 25%-owned Endako project which depicted an after-tax NPV8% of $790M and IRR of 40%. This morning, Moon River Moly Ltd. (MOO:TSXV) announced a robust updated Preliminary Economic Assessment (PEA) and MRE on its 100% owned Davidson Molybdenum-Copper-Tungsten Project in BC. This PEA follows the PEA announced on November 21st on Moon River’s secondary asset, the 25%-owned brownfield Endako Mine (read our research note on this here). The Davidson updated PEA envisions a similar operation to the 2024 PEA but with notable improvements, such as an updated resource, higher annual throughput (10,000tpd vs. 7,000tpd), and the inclusion of revenue generated from the tungsten and copper production. The study depicts a highly economic underground mining project, producing an after-tax NPV8% of $1.0B, an IRR of 32% and a 2.3-year payback (down from 3.3 years) using a long-term moly price of US$22.50/lb, US$4.06/lb Cu, and US$13.60/lb of tungsten (W). This is based on a 20-year mine life, processing 10,000tpd or 3.65Mtpa. Initial capex for the project is $672M, including $106M of contingency. Operating costs remained low with cash costs being $10.03/lb Mo (US$7.42/lb) and AISC of $10.34/lb (US$7.65/lb), providing 50%+ margins. This results in an average annual production of 13.2Mlbs Mo, 1.5Mlbs Cu, and 334Klbs W. We are highly impressed with this updated PEA, bringing up-to-date economics and several material improvements in just ~1.5 years. We are maintaining our BUY rating and increasing our target price to $4.00/share (prev. $2.80/share) on Moon River Moly.