Business
Pre-Feasibility Study Results for Orom-Cross
Pre-Feasibility Study Results for Orom-Cross.
About this update from Blencowe Resources Plc
[{"type":"text","content":"\n \n \n Date: 19 July 2022 \n \n Blencowe Resources Plc\n \n \n \n (\"Blencowe\" or the \"Company\")\n \n \n \n \n \n \n \n \n Major Milestone as Blencowe Delivers US$482M NPV Pre-Feasibility Study for Orom-Cross Graphite Project\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Pre-Feasibility Study (PFS) Highlights\n \n \n \n \n \n \n o \n \n Net Present Value (post-tax) of US$482M, a 52% increase on previously reported Preliminary Economic Assessment (PEA)\n \n \n \n o \n \n IRR (post-tax) of 49%\n \n \n \n o \n \n 14-year mine life, which can be increased by additional drilling\n \n \n \n o \n \n US$499/t operating cost (FOB Mombasa port), underlining one of the lowest cost graphite projects worldwide\n \n \n \n o \n \n US$1,307/t weighted average sales price for basket of end-products\n \n \n \n o \n \n Initial Capital requirement reduced by 23% from PEA 2021 to US$62M\n \n \n \n o \n \n US$1.398 billion EBITDA delivered over life of mine, average US$100M EBITDA p.a.\n \n \n \n o \n \n US$1.073 billion cumulative Net Cash delivered from project over life of mine\n \n \n \n o \n \n 36,000tpa end-products as 96-97% LOI concentrates in year 1, ramping up in stages thereafter to 147,000tpa\n \n \n \n o \n \n ~50% of end-product in higher value +100 to +50 mesh fractions\n \n \n \n o \n \n Blencowe to apply for Free Trade Zone License (FTZL) in 2H 2022, which in turn will bring considerable advantages, including a 10-year corporate tax exemption\n \n \n \n \n \n \n ·\n \n Pre-Feasibility Study (PFS) completed on time and under budget\n \n \n \n ·\n \n PFS indicates a robust, long-term, profitable graphite mining operation at Orom-Cross\n \n \n \n ·\n \n PFS managed by leading graphite technical experts Battery Limits Pty Limited (Australia), who have delivered several other leading graphite project feasibility studies in the past\n \n \n \n ·\n \n Scope to expand resource and ramp up production as global markets dictate\n \n \n \n ·\n \n Flake graphite forecast to move into significant supply deficit medium term as increased demand for electric vehicles (EVs) lifts demand for lithium-ion batteries. Graphite is a non-replaceable input material into lithium-ion batteries\n \n \n \n ·\n \n Blencowe will now move towards Ini...