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Grängesberg PFS Highlights Post-tax NPV8 of US...
Grängesberg PFS Highlights Post-tax NPV8 of US....
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n \n Trading Symbol\n AIM: AYM\n 19th July 2022\n Anglesey Mining plc\n (“Anglesey” or “the Company”)\n Grängesberg PFS Highlights Post-tax NPV8 of US$688m\n Anglesey Mining plc (AIM:AYM) is pleased to announce the results from the recently completed Pre-Feasibility Study (”PFS”) Update for the Grängesberg Iron Ore Project in Sweden, which has been compiled by leading mining consultant, Micon International Limited. Anglesey holds an almost 20% interest in the Grängesberg project, together with management rights and a right of first refusal to increase its interest to 70%.\n Study Highlights\n \n Production of 2.3 - 2.5Mtpa of iron ore concentrate grading 70% Fe that generates strong economic returns including: \n\nPost-tax net present value (NPV) of US$688 million (8% discount rate)Internal Rate of Return (IRR) of 25.9% (post-tax)Operating costs of US$53.60/t FOB to the port of OxelösundNet cashflow (post-tax) of US$2.08bn, for an average annual net cashflow of US$130 millionPre-production capital of US$399 million3.6 years payback\n The study assumed an iron ore price of US$120/t (62% Fe benchmark, CFR China) with sensitivities indicating a long-term price of US$80/t to achieve a positive return at a discount rate of 8%\n \n 82.4Mtpa of Probable Ore Reserves mined over a 16-year mine life with throughput of 5.3Mtpa \n\n72% conversion of Indicated Resources to Ore Reserves\n \n A 25-year Mining Concession was awarded for the Grängesberg Iron Ore Project in May 2013\n \n Low environmental impact with underground mining, partial tailings backfill, use of existing brownfields site for location of processing plant and tailings storage with existing rail infrastructure\n Potential for additional revenue stream from c.210ktpa of apatite concentrate (17-19% P) that could be sold into the global fertiliser feedstock market\n \n Micon concluded that the Grängesberg Project demonstrates an economically viable project using the stated price assumptions, cost estimates and technical parameters generated by the PFS, with the sensitivity analysis indicating positive returns can be achieved even with a 30% fall in the assumed underlying iron ore price of US$120/t.\n Commodity prices are currently experiencing significant volatility due to uncertainty regarding recession fears, ongoing conflict between Russia/Ukraine and Covid related shutdown...