Business
Millennial Potash Completes Positive PEA with After-Tax NPV(10) of $1.07B and IRR of 32.6% for its Banio Potash Project
Vancouver, British Columbia--(Newsfile Corp. - April 23, 2024) - Millennial Potash Corp. (T...
About this update from Millennial Potash Corp
[{"type":"text","content":"Millennial Potash Completes Positive PEA with After-Tax NPV(10) of $1.07B and IRR of 32.6% for its Banio Potash ProjectVancouver, British Columbia--(Newsfile Corp. - April 23, 2024) - Millennial Potash Corp. (TSXV: MLP) (OTCQB: MLPNF) (FSE: X0D) (\"MLP\", \"Millennial\" or the \"Company\") is pleased to announce the completion of a Preliminary Economic Assessment (\"PEA\") on its Banio Potash Project. The PEA was completed by Micon International (\"Micon\") in partnership with Agapito Associates Inc. (\"Agapito\") and yielded the following highlights:Optimal annual production rate of 800,000 Tonnes per Year (TPY) of primarily granular K60 Muriate of Potash (gMOP) $1.07B after-tax NPV(10) and 32.6% IRR$480M initial CAPEX estimate, including $62M in ContingencyEstimated $61/T gMOP OPEXPositive evaluations also modelled for 400,000 TPY and 600,000 TPY were also completed as part of the PEA. All dollar amounts are in US dollars unless stated otherwise. Highlights of the PEA are presented in Table 1.Farhad Abasov, Millennial's Chair, commented \"We are extremely pleased with the results of the PEA on the Banio Potash Project and it has confirmed our belief that the project is very robust and has significant economic potential. The CAPEX for the 800,000 TPY optimal case is a very competitive $480M and the OPEX at approximately $61/tonne MOP reflects an expected overall low-cost structure which would make Millennial's Banio Potash Project competitive with the lowest cost producers in the sector. Moving forward the Company plans to complete a MRE update in H2 2024 followed by the completion of early engineering studies and the initiation of a Feasibility Study and Environmental Impact Assessment.\"Table 1 PEA HighlightsLine ItemUnit Production Rate MOPt/a800 k TPYTotal Initial CAPEXUS$ million480Capital IntensityUS$/t600Total OPEX LoMUS$/t61Pre-Tax NPV10US$ million1,680Pre-Tax IRR%41Post-Tax NPV10US$ million1,071Post-Tax IRR%32.6gMOP Price (Avg-25 years)US$/t387Shipping Cost-BrazilUS$/t22NaCl price (99% purity)US$/t100PaybackYears1.4 PEA OutlineThe Banio Potash Project PEA is based on the Mineral Resource Estimate completed by ERCOSPLAN early in 2024 (see Press Release dated Jan. 16, 2024). The MRE is comprised of an Indicated Mineral Resource Estimate of 657M tonnes grading 15.9% KCl, and an Inferred Mineral Resourc...