Cheers
Here are the key highlights:
The development plan is based on a hybrid mining model combining low strip ratio open pit mining and higher-grade underground mining. The processing operation uses Dense Media Separation (DMS) only, avoiding flotation and chemical reagents, simplifying the process. The project targets a steady-state production rate of around 800,000 tonnes per annum (tpa) of SC5.5 spodumene concentrate, with a mine life of about 20 years. The total ore processing capacity planned is up to 5.1 million tonnes per annum (Mtpa). Operating costs are competitive, with a total cash operating cost (AISC) of approximately $729/tonne (US$544/t) and an all-in sustaining cost of about $800/tonne (US$597/t). At a long-term spodumene price assumption of US$1,221/tonne, the project delivers an after-tax net present value (NPV) at 8% discount rate of about $1.59 billion (US$1.19 billion) and an internal rate of return (IRR) of roughly 18.1%. The total development capital is estimated at around $1.98 billion, or about $1.51 billion net after pre-production credits, including a Canadian Clean Technology Manufacturing Investment Tax Credit. 18% sounds great, but when combined with the very high capital cost it is less robust. This does not mean there is no mine, but markets were a bit disappointed in the overall numbers.