OGDC and PPL have confirmed the completion of the feasibility study for the Reko Diq Mining Project, marking a significant milestone in the project’s development. With an estimated 37-year production life, the mine is located in Balochistan’s Chagai District, within the Tethyan Magmatic Belt—home to one of the world’s largest copper and gold reserves. OGDC, PPL, and GHPL collectively hold a 25% stake (8.33% each) in the project.

We previously analyzed the feasibility study’s valuation implications in our report (link to report here). For reference, both state-owned E&P companies have confirmed a total investment outlay of US$349mn, subject to shareholder approval. Factoring in OGDC/PPL’s 8.33% stakes, we estimate the mining project to contribute PkR51/81 per sh to respective valuations before adjusting for the minority stake discount.

The updated feasibility study for the Reko Diq Mining Project outlines a 37-year mine life, split into two phases, with Phase-1 requiring a capital outlay of US$5.6bn (exclusive of project financing). Additionally, up to US$3.0bn will be raised through project financing. Phase-2 will be financed through internally generated revenues from Phase 1, supplemented by additional project financing and shareholder contributions, if required.

With regards to production, Phase-1 is set to commence in CY28, processing 45mn tons of mill feed annually. By 2034, Phase-2 is expected to double process capacity to 90mn tons annually. Based on existing reserves, the Reko Diq project is projected to produce 13.1mn tons of copper and 17.9mn oz of gold over the entire mine life.

We reiterate our ‘BUY’ stance on OGDC and PPL, with respective Dec’25 target prices of PkR358/sh and PkR286/sh, depicting an upside potential of 60%/54% from last close.

Courtesy – AKD Research