Mincor Resources released a definitive feasibility study for its integrated nickel restart plan in Western Australia’s Kambalda District.
Mincor Resources (ASX:MCR,OTC Pink:MCRZF) announced the release of a definitive feasibility study (DFS) for its integrated nickel restart plan in Western Australia’s Kambalda District.
Highlights from the study are as follows:
Strong financial returns1
- Pre‐tax NPV7% of $305m and 98% IRR • EBITDA totalling $585m
- Pre-tax and post-tax free cash flow generation of $407m and $315m respectively
- Capital payback of 12 months from first nickel concentrate production
Low cost operations
- Life of Mine (“LOM”) unit cash costs of operations of $3.36/lb (US$2.35/lb), with Cassini averaging $2.71/lb (US$1.90/lb)
- LOM AISC of $4.47/lb (US$3.13/lb), with Cassini averaging $3.81/lb (US$2.67/lb)
Low pre-production and LOM CAPEX
- Pre-production CAPEX of $68m, mainly associated with mine development and related infrastructure
- Project peak cash requirement of $97m including working capital; LOM CAPEX of $179m
- Funding process well advanced with domestic and international institutions, with binding credit-approved terms sheets expected in the June 2020 quarter