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Wellgreen Platinum (TSX:WG) has released its much anticipated preliminary economic assessment for its Wellgreen project in Canada’s Yukon. The study considers an open pit operation, with some selective high-grade underground mining.
Wellgreen Platinum (TSX:WG) has released its much anticipated preliminary economic assessment (PEA) for its Wellgreen project in Canada’s Yukon. The study considers an open pit operation, with some selective high-grade underground mining.
According to the press release, highlights of the PEA include:
- Pre-tax net present value (NPV) of CAD$2.1 billion with a pre-tax internal rate of return (IRR) of 32.2%, and an after-tax NPV of CAD$1.2 billion with an after-tax IRR of 24.6% at a 7.5% discount rate.
- Average annual operating cash flow of CAD$337 million over the first 16 years and an average of CAD$301 million per year over the 25 year LOM.
- Initial capital expenditures of CAD$586 million (including contingencies in the amount of CAD$100 million) with expansion, sustaining and closure capital of CAD$964 million over the LOM.
- Payback of 2.6 years pre-tax and 3.1 years after taxes.
- Total net smelter revenue of CAD$15.5 billion and operating cash-flow of CAD$7.5 billion over the LOM.
Wellgreen president and CEO, Greg Johnson, said:
Completion of the 2015 PEA for the Wellgreen project is a major milestone in our Company’s development. This new study highlights our belief that the Wellgreen project can become one of the world’s largest and lowest cost, open pit PGM and nickel producers located in one of the world’s best mining jurisdictions.
Click here to read the Wellgreen Platinum (TSX:WG) press release