Mining Weekly reported that Gulf Manganese Corporation Ltd. (ASX:GMC) has redrafted the smelter study for its Timor project. It shows that the project should return EBITDA of $374.7 million over a period of 10 years.

The study was redrafted to comply with the “one-stop shop” process of Indonesia’s Investment Coordination Board.

As quoted in the market news:

The ASX-listed company, which published the redrafted Timor smelter study and a project update on Monday, stated that the smelting hub would have an estimated net present value (NPV) of $160.6-million, using an 8% discount factor.

The redrafted study showed that the project required a capital investment of $66-million, which would be staged over five years, and provided estimated returns supporting an internal rate of return of 55.6%.

Gulf Manganese initially reported that the project would earn $623.8-million in Ebitda over a 20-year period, supporting an estimated NPV of $201.4-million.  Its initial capital investment estimate, as reported in May, was $67.5-million spread over a four-year period.

The manganese alloys producer was proposing to build eight furnaces, each with a capacity of 20 000 t/y, over a five-year period, which it intended to fund by an initial public offering on the Catalist board of the Singapore Stock Exchange, raising $25-million, project debt and operational cash flow.

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