Fertoz Reports Results from Scoping Study at Wapiti Phosphate Project in BC

Fertoz Limited (ASX:FTZ) announced the results from the scoping study at its Wapiti project in British Columbia, which showed a post-tax unlevered IRR of 82.4 percent.

As quoted in the press release:

The Scoping Study presents attractive development economics with capital expenditure of C$2.7 million required to generate a project NPV of C$20.1m. The capital expenditure will be phased across three years; C$200,000 in 2015, C$1.5 million in 2016 and C$1.0 million in 2017. The C$/A$ rate as of 13 May 2015 is 1.04. Refer to Table 1 below for the key assumptions and financial metrics.

Highlights from the study:

• Scoping Study completed delivering:
• Post tax, unlevered NPV10 real of C$20.1m
• Post tax, unlevered IRR of 82.4%
• Pre-tax cash flows of C$69.8m over the life of the project
• Target first production in 2016 and ramp-up to 75ktpa capacity by 2018
• Greater than 20-year mine life based on an Indicated and Inferred Resource of 1.54Mt @ 21.6% P2O5
• Low capital cost of C$2.7m and payback by 2018, most capital costs to be funded through phosphate sales
• Simple mining method utilising shallow open pits and a strip ratio of 1.6:1 for Stage 1

Les Szonzi, managing director of Fertoz, commented:

The Scoping Study has been specifically designed to minimize upfront capital expenditure and achieve near term positive cash flow with a shallow, 7 meter deep open pit design for the initial 7 years of the project. With fertilizer sales well underway through our FertAg JV in Australia and the likelihood of near term commercial production in North America, Fertoz continues to establish its credentials as an emerging agribusiness.

Click here to read the full Fertoz Limited (ASX:FTZ) press release.