Horizonte Minerals Plc, (AIM/TSX:
HZM) ('Horizonte' or 'the Company') the nickel
development company focused in Brazil, is pleased to announce that
it has filed the Feasibility Study (‘FS’ or the ‘Study’) for the
Araguaia Ferronickel Project (‘Araguaia’, or ‘the Project’) in
Brazil’s Pará State on SEDAR. The Study has been prepared in
accordance with the National Instrument 43-101 – standards of
Disclosure for Mineral Projects (‘NI 43-101’) and was previously
announced on the 29th October 2018.
The Study confirms Araguaia as a Tier 1 project
with a large high-grade scalable resource, a long mine life and a
low-cost source of ferronickel for the stainless-steel industry.
The Stage 1 FS design allows for future construction of a second
Rotary Kiln Electric Furnace (‘RKEF’) process line (‘Stage 2
expansion’ or ‘Stage 2’), with potential to double Araguaia’s
production capacity from 14,500 tonnes per annum (‘t/a’) nickel up
to 29,000 t/a nickel. The results of this Stage 2 expansion study
are included as an opportunity in Section 25 of the NI 43-101
Technical Report with the economics highlighted below.
Stage 1 - FS Highlights:
- Initial 28-year mine life generates cash flows after taxation
of US$1.6 billion with sufficient mineral resources to extend
beyond 28 years;
- Estimated post-tax Net Present Value1 (‘NPV’) of US$401
million2 and Internal Rate of Return (‘IRR’) of 20.1% using the
base case nickel price forecast of US$14,000 per tonne3
(‘/t’);
- Upon development, the Project is expected to produce an average
of 14,500 tonnes of nickel contained within approximately 52,000
tonnes ferronickel per annum, utilising the proven RKEF technology
currently used at over 40 mines around the world;
- The base case FS economics assume a flat nickel price of
US$14,000/t for the entire 28-year mine life based on Wood
Mackenzie’s short-term forecast;
- C1 (Brook Hunt) cash cost year 1 to year 10 of US$3.08 per
pound (‘/lb’) of nickel (US$6,794/t), making Araguaia a low-cost
producer;
- Using the consensus mid-term nickel price of US$16,800/t, the
post-tax NPV increases to US$740 million with an IRR of 28.1%,
reflecting the significant leverage that the Project returns have
to any future increase in nickel prices; and
- Capital cost estimate of US$443 million (AACE class 3),
including US$65.3 million of contingencies equating to 17.2% of
total capex budget.
Stage 2 - Second Line Expansion
Highlights:
A key part of the FS Stage 1 Project design was
that the RKEF plant and associated infrastructure was designed to
accommodate the addition of a second RKEF process line (Stage 2
expansion), with potential to double Araguaia’s production capacity
from 14,500 t/a nickel up to 29,000 t/a nickel. The Project Mineral
Resource inventory has the grade and scale to support the increase
in plant throughput from 900 kt/pa (Stage 1) to the Stage 2 rate of
1.8 Mt/a supporting the twin line RKEF flow sheet. The Stage 2
expansion assumes operating at Stage 1 production rate of 900 kt/pa
for three years, after which free cash flows would be reinvested to
expand the plant to 1.8 Mt/pa by the addition of a second line. All
figures below represent this combined production of stage 1 for 3
years followed by the enlarged production for the remainder of the
Life of Mine.
- The Stage 2 expansion, assumed in year 3, supports a 26-year
mine life generating cash flows after taxation of US$2.6
billion;
- No increase in upfront capital cost which remains at the same
level at the FS Stage 1 of US$443 million, the Stage 2 expansion is
financed through operational cash flow;
- Estimated post-tax Net Present Value3 (‘NPV’) of US$741
million4 and Internal Rate of Return (‘IRR’) of 23.8% using the
base case nickel price forecast of US$14,000/t5;
- Using a nickel price of US$11,000/t generates cash flows after
taxation and payback of capital of US$1.0 billion;
- Nickel grade of 1.82% for the first 10 years of the Stage 2
operation;
- Annual nickel production of 29,000 t/a;
- C1 (Brook Hunt) cash cost year 1 to Year 10 of US$3.00 per
pound (‘/lb’) of nickel (US$6,613/t), making Araguaia a low-cost
producer. Life of mine C1 cash cost of US$3.51 per pound (‘/lb’) of
nickel (US$7,737/t); and
- Using the consensus mid-term nickel price of US$16,800/t, the
post-tax NPV8 for the Stage 2 option increases to US$1,264 million
with an IRR of 31.8%.
Horizonte CEO, Jeremy Martin,
commented;
“Following on from the successful completion of
the Feasibility Study for the Araguaia ferronickel project, we are
very pleased to file the 43-101 Feasibility Technical Report which
includes as an opportunity the Stage 2 expansion to add a second
RKEF line to the Project. The Stage 2 expansion would potentially
increase annual nickel production from 14,500 tonnes per annum to
29,000 tonnes per annum whilst demonstrating economies of scale for
both operating and capital costs. For this scenario the
upfront pre-production capital cost remains unchanged at US$443
million and the incremental capital expenditure to build the stage
2 expansion, is anticipated to be financed out of operational free
cash flow. The FS design of the RKEF plant and all associated
infrastructure was configured to allow a second RKEF line to be
added at a future time, as such the Stage 2 expansion benefits from
the existing utilities and infrastructure expenditure. Significant
items such as the powerline, water pipeline, overall process plant
site, utilities, and slag storage facility already have sufficient
capacity built in during the Stage 1 planning to meet the desired
production increase.
The economics of the Stage 2 expansion in year 3
are compelling with the Base Case NPV8 of US$741 million and IRR of
23.8%, increasing to an IRR of 31.8% when applying consensus nickel
price assuming no change in the upfront capital investment for the
Stage 1 single line RKEF plant as shown in the FS. If we
apply a nickel price of US$11,000 per tonne nickel, the enlarged
twin line plant generates cash flows after taxation and pay back of
capital of US$1.0 billion.
We have always maintained that Araguaia has a
high grade scalable mineral resource with only a small part
utilised for the single line plant. As demonstrated in the Stage 2
expansion the resource can comfortably support the increased
capacity for over 26 years with the first 10 years averaging 1.82%
nickel which places Araguaia on the upper range of the global grade
curve even with the increased mining rate.
The recent weakness in nickel prices appears to
be reflection of macroeconomics and does not appear to have
impacted wider consensus of the positive future potential of the
nickel market. Demand versus supply deficits remain forecast for
the short term. Inventories on the LME continue to fall with
significant new supply required for the stainless-steel market
which is growing at 5%6 year on year, with new demand driven from
the EV battery sector. Araguaia is anticipated to come online in
2021 and be placed in the lower quartile7 on the laterite C1 cost
curve (year 1 to year 10 of US$3.08 per pound of nickel
(US$6,794/t)8 making it one of the lower cost new nickel projects.
Meanwhile the forward C1 cost curve is expected to consistently
rise due to the rising costs of inputs as well as the reducing
global grade profile across existing mines.
The successful completion of the Feasibility
Study and the positive economics from the Stage 2 expansion all
confirm that Araguaia is a tier 1 asset demonstrating flexibility
and scalability with compelling economics.
The Company is well funded as we work to advance
Araguaia to the construction stage and start to advance our second
100% owned Vermelho Nickel Cobalt project as part of the company’s
strategy to become a leading nickel development Company. I look
forward to updating the market on progress as we move into
2019.”
Stage 2 Second Line Expansion
Details:
The FS plant ore feed rate of 900kt/a is based
on a single line RKEF plant (Stage 1). This size plant represents
the optimal capacity for an achievable capital cost for project
financing for a single project junior development company. However,
the Stage 1 plant capacity underutilises the significant Mineral
Resource that HZM has within the project area (~119Mt Measured and
Indicated Mineral Resources at 1.27% Ni). In the FS, the
cut-off grade is 1.4% Ni and represents a “high-grade” option. The
marginal cut-off grade for the Project is closer to 1.0% Ni. This
means that there is a significant quantity of potentially economic
material that is not mined or processed in the current Stage 1 FS
schedule. Accordingly, the opportunity contemplated here is that
the Stage 1 production scenario (the FS Base Case) is built and
produces at an initial production level 14,500 t/a of Nickel, and
that the Stage 2, expansion in year 3 is implemented as the project
starts generating cash flows, thereby increasing total production
to 29,000 t/a Nickel.
To explore the potential value of increasing the
production rate at Araguaia, a Stage 2 expansion to 1,800kt/a plant
feed in Year 3 was contemplated at a scoping level. In this Stage 2
scenario, Snowden completed pit optimisations based on the FS costs
and modifying factors. The pit optimisations targeted any material
determined to be economic, rather than the elevated Ni cut-off
grade applied in the FS. Only Measured and Indicated Mineral
Resources were considered in this scenario. Overall, the target was
to achieve a similar mine life to the FS schedule (~28 years). This
was achieved by selecting a revenue factor pit shell equivalent to
a nickel price of US$11,200/t Ni which yields 44.0Mt of ore
feed.
The Stage 1 FS plant layout was designed to
allow for the future construction of a second RKEF line. A
significant portion of the Stage 1 RKEF plant and associated
infrastructure has sufficient capacity to support the Stage 2
expansion, resulting in substantially lower capital costs to
implement the second RKEF line. The Stage 1 equipment and
infrastructure that does not require upgrading for Stage 2
includes;
- The main power line to the plant;
- The principle road and bridge infrastructure in-bound and
outbound to the mine site;
- Overall plant site layout, plant road / offices / stores /
workshops;
- Refinery facility;
- The slag storage facility; and
- Water abstraction pipeline.
As part of the preparation of the Stage 2
expansion, HZM has completed a scoping level estimate of the costs
associated with implementing a second RKEF line after Year 3 of the
mine life using the FS capex as a basis and locating the additional
equipment in the areas shown in Figure 1 within the existing
FS plant layout. A summary of the estimated direct equipment costs
along with associated civil works and installation costs for the
Stage 2 expansion are shown in Table 1.
Figure 1 FS Plant layout with Stage 2 - Second line items
shown in blue
A photo accompanying this announcement is available
at
http://www.globenewswire.com/NewsRoom/AttachmentNg/0980881c-f173-4979-9cc5-7754eb0481d9
Table 1 Stage 1 and Stage 2 capex
WBS |
Area |
Stage 1 FS
Pre-productionCapex(US$ million) |
Stage 2 –
SecondRKEF line Pre-production Capex (US$
million) |
EquipmentAdditions for Stage
2 |
1000 |
Mine |
6.0 |
- |
NA |
3000 |
Ore Preparation |
39.0 |
25.2 |
Dryer |
4000 |
Pyrometallurgy |
137.5 |
109.2 |
Kiln, Furnace |
5000 |
Material Supply |
21.4 |
8.6 |
Coal pulverisation |
6000 |
Utilities andInfrastructure |
106.9 |
18.5 |
Substation, waterpumping, coolingdam lift, watercooling pipe |
7000 |
Buildings |
9.1 |
0.6 |
Admin, changehouse, canteen |
8000 |
Indirect Costs |
82.4 |
22.0 |
EPCM, Owners,Construction Camp,engineering |
|
Contingency |
41.0 |
15.6 |
Contingency |
|
Total capex |
443.1 |
199.7 |
|
The additional costs for the Stage 2 – Second
RKEF line shown in Table 1 above, represent sustaining capital
expenditure which would be financed once the Stage 1 operation is
cash flow positive. Therefore, the pre-production capital costs
would remain the same as the FS at US$443.1 million.
Key additional items required within the plant
area for Phase 2 are included in Table 1; ore preparation dryer,
kiln and furnace. Items outside of the plant area include
additional pumping capacity for the water abstraction pipeline, a
second plant cooling water pipeline and an increase in the cooling
water dam capacity.
The operating costs after the Stage 2 RKEF line
becomes fully operational were estimated based on the FS operating
cost estimate. A comparison of the physicals and the economics of
the FS and the expansion opportunity are shown Table 2 below.
Table 2 Comparison of physicals and financial KPI’s for the FS
case and the Stage 2 Expansion9
Item |
Unit |
FS Stage 1 |
Stage 2 – Second Line
RKEFExpansion |
Base Case(US$14,00/tNi) |
Consensus case(US$16,800/tNi) |
Base Case (US$
14,000/tNi) |
Consensuscase(US$16,800/tNi) |
Physicals |
|
|
|
|
|
LOM plant feed10 |
Mt |
27.3 |
27.3 |
44.1 |
44.1 |
Process rate |
kt/a |
900 |
900 |
1,80011 |
1,8007 |
Year 1- 10 Ni grade |
% |
1.91 |
1.91 |
1.82 |
1.82 |
LOM Ni grade |
% |
1.69 |
1.69 |
1.53 |
1.53 |
LOM Nickel production |
kt |
426 |
426 |
624 |
624 |
Strip ratio |
w:o |
2.1 |
2.1 |
1.9 |
1.9 |
Mine life |
years |
2812 |
288 |
2613 |
269 |
Economics |
|
|
|
|
|
Pre-production Capital |
US$ M |
443 |
443 |
443 |
443 |
LOM Sustaining Capital cost |
US$ M |
143 |
143 |
396 |
396 |
Capital Intensity – Initial capex/t Nickel |
US$/t Ni |
1,041 |
1,041 |
710 |
710 |
C1 Cost (Brook Hunt) |
US$/t Ni |
8,193 |
8,193 |
7,737 |
7,737 |
C1 Cost (Brook Hunt) Years 1- 10 |
US$/t Ni |
6,794 |
6,794 |
6,613 |
6,613 |
Breakeven (NPV8) Ni price |
US$/t |
10,766 |
10,766 |
10,105 |
10,105 |
Total Revenue |
US$ M |
5,970 |
7,164 |
8,742 |
10,490 |
Total cost |
US$ M |
3,811 |
3,995 |
5,351 |
5,617 |
Operating cash flow |
US$ M |
2,159 |
3,169 |
3,391 |
4,876 |
Net cash flow |
US$ M |
1,572 |
2,582 |
2,552 |
4,033 |
NPV8 |
US$ M |
401 |
740 |
741 |
1,264 |
IRR |
% |
20.1 |
28.1 |
23.8 |
31.8 |
Report Filing
A technical report on this FS, prepared in
accordance with the NI 43-101 reporting requirements, has been
filed on SEDAR at www.sedar.com and at
www.horizonteminerals.com
Qualified
Persons
Mr Frank Blanchfield, B.Eng, FAusIMM, Principal
Consultant, Snowden Mining Industry Consultants Pty Ltd;
Mr Andrew Ross, BSc (Hons), MSc, FAusIMM,
Principal Consultant, Snowden Mining Industry Consultants Pty
Ltd;
Mr Francis Roger Billington, BSc (Hons), P.Geo.
(APGO), Consultant;
Dr Nicholas Barcza, BSc (Eng.), MSc (Eng.), PhD,
Pr.Eng. (ECSA), HLFSAIMM, Metallurgical Engineering Consultant;
Mr. David Haughton, B. Sc, MIMM, C Eng, Senior
Process Engineer on behalf of Canadian Engineering Associates Ltd;
and
Mr Robin Kalanchey, BASc.(Metals and Materials
Engineering), P.Eng., Director, Minerals and Metals Western Canada,
Ausenco Engineering Canada Inc (Ausenco);
are the Qualified Persons under NI 43-101, and
have reviewed, approved and verified the technical content of this
press release, related to their area of expertise.
For further information visit www.horizonteminerals.com or
contact:
Horizonte Minerals plc |
|
Jeremy
Martin (CEO) |
+44 (0) 203 356 2901 |
|
|
Numis Securities Ltd (NOMAD & Joint
Broker) |
|
John
Prior Paul Gillam |
+44 (0) 207 260 1000 |
|
|
Shard Capital (Joint Broker) |
|
Damon
Heath Erik Woolgar |
+44 (0) 20 186 9952 |
|
|
Tavistock (Financial PR) |
|
Emily
FentonGareth Tredway |
+44 (0) 207 920 3150 |
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed
nickel development company focused in Brazil. The Company is
developing the Araguaia project, as the next major ferronickel mine
in Brazil, and the Vermelho nickel-cobalt project, with the aim of
being able to supply nickel and cobalt to the EV battery
market. Both projects are 100% owned.
Horizonte shareholders include: Teck Resources
Limited, Canaccord Genuity Group, JP Morgan, Lombard Odier Asset
Management (Europe) Limited, City Financial, Richard Griffiths and
Glencore.
Glossary of technical terms
AACE |
Association for the
Advancement of Cost Engineering |
AACE Class 3 |
+-10% +15% accuracy |
Agglomerated |
Made into small lumps |
Al2O3 |
Aluminium Oxide |
ANN |
Araguaia Nickel North (the
Northern deposit) |
ANS |
Araguaia Nickel South (the
Southern deposits) |
C1 |
C1 cash cost as defined by
Brook Hunt |
Calcine |
Output from the kiln which
is ore that is reduced by heating in the presence of oxygen and
coal |
Capex |
Capital cost |
Co |
Cobalt |
Cut-off grade |
Lowest grade of
mineralisation material considered economic, used in the
calculation of ore resources |
Cr2O3 |
Chromium Oxide |
Dilution |
Waste or low-grade
material accidentally mined with the ore |
EPC |
Engineering Procurement
and Construction |
EPCM |
Engineering Procurement
and Construction Management |
EV |
Electric Vehicles |
Fe |
Iron |
FeNi30 |
Ferronickel with 30%
Nickel and 70% Iron |
Ferronickel or FeNi |
An alloy that contains
approximately 30% nickel and 70% iron and is the produced by the
project as an ingot |
HZM, Horizonte or the
Company |
Horizonte Minerals
plc |
IFC |
International Finance
Corporation |
IRR |
Internal Rate of
Return |
Kt |
Thousand Tonnes
(metric) |
LME |
London Metal Exchange |
LOM |
Life of mine |
Loss |
Ore that is
unintentionally left behind or mined as waste |
MgO |
Magnesium Oxide |
MT |
Million Tonnes
(metric) |
Ni |
Nickel |
NPV8 |
Net present value at an 8%
discount rate |
Opex |
Operating cost |
Ore |
A naturally occurring
solid material from which a metal or valuable mineral can be
extracted profitably |
PEA |
Preliminary Economic
Assessment |
Reverse Circulation
Drilling |
A rock drilling system
that circulates drill cuttings through the centre of the drill rod
so that they can be collected and assayed without
contamination |
RKEF |
Rotating Kiln Electric
Furnace is the process by which nickel laterite ore is reduced and
then melted in so that metal is separated from the slag to produce
ferronickel |
ROM |
Run of mine stockpile |
Shotted |
Formation of small pellets
from molten material |
SiO2 |
Silicon Dioxide |
Tpa |
Tonnes (metric) per
annum |
US$ |
United States Dollar |
WM |
Wood Mackenzie |
Mineral Reserves |
Mineral
Reserves are sub-divided into 2 categories. The highest level of
Reserves or the level with the most confidence is the `Proven'
category and the lower level of confidence of the Reserves is the
`Probable' category. Reserves are distinguished from resources as
all of the technical and economic parameters have been applied and
the estimated grade and tonnage of the resources should closely
approximate the actual results of mining. The guidelines state
"Mineral Reserves are inclusive of the diluting material that will
be mined in conjunction with the Mineral Reserve and delivered to
the treatment plant or equivalent facility." The guidelines also
state that, "The term `Mineral Reserve' need not necessarily
signify that extraction facilities are in place or operative or
that all government approvals have been received. It does signify
that there are reasonable expectations of such approvals.
|
Proven Mineral
Reserves |
A
`Proven Mineral Reserve' is the economically mineable part of a
Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This study must include adequate information on
mining, processing, metallurgical, economic, and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction is justified. |
Probable Mineral
Reserves |
A
`Probable Mineral Reserve' is the economically mineable part of an
Indicated and in some circumstances a Measured Mineral Resource
demonstrated by a least a Preliminary Feasibility Study. This study
must include adequate information on mining, processing,
metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can
be justified. |
Minerals Resource |
Mineral
Resources are sub-divided into 3 categories depending on the
geological confidence. The highest level with the most confidence
is the `Measured' category. The next level of confidence is the
`Indicated' category and the lowest level, or the resource with the
least confidence, is the `Inferred' category. |
Indicated Mineral
Resource |
An
`Indicated Mineral Resource' is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics, can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably
assumed. |
Measured Mineral
Resource |
A
`Measured Mineral Resource' is that part of a Mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration, sampling
and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that are spaced closely enough to confirm both geological and
grade continuity. |
Inferred Mineral
Resource |
An
`Inferred Mineral Resource' is that part of a Mineral Resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is
based on limited information and sampling, gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. |
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING INFORMATION
Except for statements of historical fact
relating to the Company, certain information contained in this
press release constitutes "forward-looking information" under
Canadian securities legislation. Forward-looking information
includes, but is not limited to, the ability of the Company to
complete the Acquisition as described herein, statements with
respect to the potential of the Company's current or future
property mineral projects; the success of exploration and mining
activities; cost and timing of future exploration, production and
development; the estimation of mineral resources and reserves and
the ability of the Company to achieve its goals in respect of
growing its mineral resources; the ability of the Company to
complete the Placing as described herein, and the realization of
mineral resource and reserve estimates. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
information is based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience
and its perception of trends, current conditions and expected
developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date that
such statements are made, and are inherently subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to risks related to: the inability of the Company to
complete the Acquisition as described herein, exploration and
mining risks, competition from competitors with greater capital;
the Company's lack of experience with respect to development-stage
mining operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in
countries in which the Company operates; currency exchange
fluctuations; the Company's ability to manage its growth
effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company's plans to
continue to develop its operations and new projects; the Company's
dependence on key personnel; possible conflicts of interest of
directors and officers of the Company, the inability of the Company
to complete the Placing on the terms as described herein, and
various risks associated with the legal and regulatory framework
within which the Company operates. Although management of the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements.
__________________________________________
1 NPV calculated using 8% discount rate
2 USD/BRL 1/3.5 exchange rate applied for life-of-mine
3 NPV calculated using 8% discount rate
4 USD/BRL 1/3.5 exchange rate applied for life-of-mine
5 Wood Mackenzie Short term forecast – see market section of NI
43 -101
6 Source: Glencore
7 Data from Wood Mackenzie cost curve
8 Stage 1 only, C1 cash costs as per FS
9 The physicals and cash flow assessment
presented as Stage 2 in the table are preliminary in nature and are
based on a mine schedule and an estimate of the additional plant
and equipment needed to achieve the additional capacity. The
capital costs for the additional plant and equipment are based on
the FS costs, and the cost of installation and civil engineering
are factored from the FS costs. Operating costs at the increased
capacity are factored based on the FS operating cost estimate.
10 Includes low grade stockpiles processed at the end of the
schedule
11 Increased process rate commences after year 3
12 28 years mining following by 3 years of low grade stockpile
processing
13 26 years mining followed by 2 years of low grade stockpile
processing
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