Business
Publication of Positive Pre-Feasibility Study
Publication of Positive Pre-Feasibility Study.
About this update from Ironveld Plc
[{"type":"text","content":"\n \nRNS Number : 3002G Ironveld PLC 05 June 2013 \n \n\nIronveld plc (\"Ironveld\" or the \"Company\")\nPublication of Positive Pre-Feasibility Study \n \nThe Company is pleased to announce a summary of the Pre-Feasibility Study (the 'Study' or 'PFS') assessing the economic viability of its pig iron and ferro-vanadium project (the \"Project\") on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa.\nPFS Highlights:\n· The Study demonstrates the viability of developing the Ironveld Pig Iron Project delivering one million tons per annum of pig iron and 9,670 tons of Ferro Vanadium (\"FeV\") production from 2019\n· World class ferro vanadium grades significantly enhance the overall Project economics \n· Post- tax project IRR of 28.8% and NPV (10%) of R 10,694 million (US$ 1,069 million) with a capital payback of seven years\n· Estimated capex of R 9,375 million (US$ 938 million) for a 25 year life of mine (\"LOM\") with operating Cost of R 2,393/t pig iron and R 47/kg FeV\n· Study has been based on pig iron prices of U$ 450/ t and U$35/kg for FeV, yielding total annual revenue of R 6,500 million at full production\n· Robust infrastructure surrounding the Project with delivery routes for water, rail and power identified\n· Confirmation of viability to install an early stage 12MW smelter to produce an initial 46,000 tons of Pig iron and 445 tons of ferro vanadium per annum from 2015 some two years ahead of the larger project\n· The 12MW smelter will provide significant near term revenue as well as deliver proof of concept ahead of commissioning of four 75MW smelters required to achieve the longer term one million ton production target\n \nCommenting on the Study, Peter Cox, CEO of Ironveld plc, said: \"The results of the PFS are extremely positive. Our project has been shown to have excellent economics with both the pig iron and ferro vanadium grades exceeding our initial expectations. The ferro vanadium grade in particular has been confirmed as world class and will significantly reduce the overall operating cost while delivering a robust margin.\n\"We have focused on ensuring the Study p...