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RETRANSMISSION: Manganese X Energy Announces Positive PEA for its Battery Hill Project After-Tax NPV10% of $486M US, and IRR of 25%
Sensitivity analysis shows after-tax NPV10% of US$914 Million at US$4,200/t HPMSM Montreal, Q...
About this update from Manganese X Energy Corp.
[{"type":"text","content":"RETRANSMISSION: Manganese X Energy Announces Positive PEA for its Battery Hill Project After-Tax NPV10% of $486M US, and IRR of 25%Sensitivity analysis shows after-tax NPV10% of US$914 Million at US$4,200/t HPMSMMontreal, Quebec--(Newsfile Corp. - May 12, 2022) - Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC) (OTCQB: MNXXF) (\"Manganese X\", \"MN\", or the \"Company\") is very pleased to announce positive results from the independent Preliminary Economic Assessment (\"PEA\") for its wholly owned Battery Hill project (the \"Project\") located near Woodstock, New Brunswick. The PEA was prepared by Wood Canada Ltd. (\"Wood\"), an independent engineering services group with extensive experience in mining and mineral processing. All dollar values are in US dollars unless otherwise stated.PEA Highlights:Robust EconomicsAfter-tax net present value using a 10% discount rate (\"NPV10\"): $486 million 25% internal rate of return (\"IRR\")Capital costs (\"CAPEX\") of $350 million with a payback of 2.8 yearsAverage annual gross revenue of $177 million per year over the 47 years Project lifeAverage annual gross revenue of $220 million over the first seven yearsLife of mine (\"LOM\") operating cost (\"OPEX\") of $122/t material processedHPMSM Market PriceBase case market price of $2,900/t for battery-grade high-purity manganese sulphate (\"HPMSM\") is well below the long-term forecast price of $4,200/t HPMSM estimated by CPM GroupPrice SensitivityBase case undiscounted after-tax cashflow: $3.4 billionSensitivity analysis shows after-tax NPV10 reaches $914 million at $4,200/t HPMSM - see sensitivity analysis Table 1 belowLong Mine Life40-year mine production life and seven years of stockpile reclaim feed Total LOM production of 3.2 million tonnes of HPMSMAverage annual HPMSM production of 68,000 tonnes over the LOMAverage annual HPMSM production of 84,000 tonnes in the first seven years of productionLow Environmental ImpactFlowsheet produces a filtered residue leach product with initial acid-base accounting and non-acid generating test results showing no acid drainage riskProject Objectives Project is now advancing towards a pilot project, pre-feasibility study as well as advancing a drilling program to upgrade and expand manganese resourcesSensitivity Analysis:Table 1 - Selected Financial Metrics Sensitivity to PriceMetricsHPMSM Price ($/t)$1...