PFS for Cadia - fill in the details for Havieron PFS8 Oct 2021 13:47
Below is the summary PFS for Cadia released 19 August 2021. Anyone care to have a shot at filling in the details for Havieron (more ounces of course)? Be interesting to see who comes closest.
***
"Cadia PC1-2 Pre-Feasibility Study delivers attractive returns
Newcrest Mining Limited (ASX, TSX, PNGX: NCM) is pleased to announce that the Newcrest Board has approved
the Cadia PC1-2 Pre-Feasibility Study (the Study), enabling the commencement of the Feasibility Stage (the
Feasibility Study) and Early Works Program. The Study updates and defines a significant portion of Cadia’s future mine plan, with the development of PC1-2 accounting for ~20% of Cadia’s current Ore Reserves. The approved commencement of the Early Works Program
will allow critical infrastructure to be established in parallel with the Feasibility Study, before the commencement of
the Main Works program in the second half of CY22. A$120 million (~US$90 million) of funding has been approved
for this Early Works Program which is expected to commence in the December 2021 quarter.
Summary of Study Findings
? The PC1-2 Pre-Feasibility Study has the following key findings:
o Estimated total capital expenditure of ~A$1.3 billion (~US$0.9 billion)
o Real, after-tax Internal Rate of Return (IRR) of 21.5%
o Net Present Value (NPV) of A$2.0 billion (US$1.5 billion)
o ~17 year mine life from first production, at an average of 15mtpa
o Total ore production of 258mt producing 3.5moz of gold and 660kt of copper
o Average All-In Sustaining Cost (AISC) of A$54/oz (US$41/oz)
o Enhanced footprint design and productivity allowing:
? Deferral of ~25% of the previously required footprint into a future PC1-3 project
? A$150 million (US$112 million) reduction in the initial capital spend
? Enhanced average gold and copper grades in the medium term
? Early Works Program of critical path activities for the establishment of PC1-2 is expected to commence in
the December 2021 quarter
? Feasibility Study has now commenced
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “The development of the PC1-2
cave is the next step in Cadia’s block caving journey. The Study underpins an optimised mine design which we
expect will deliver higher gold and copper grades and enable the deferral of capital expenditure in the medium term.
We have significant financial headroom to fund the construction of PC1-2, together with our other organic growth
options, from our expected cash flow generation over the development period and our strong balance sheet.”
“This project, together with the expansion project currently in progress, is expected to sustain Cadia’s position as
one of the largest, lowest cost and long life gold mines in the world. The team at Cadia is passionately committed to
building on this world class asset, driving employment and other benefits for the local community and other
stakeholders, and maintaining a focus on innovation, continuous improvement and s
Sign In
Follow the stocks
