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Highlights
· Pre-Tax Net Present Value at 8% discount rate (NPV8) of US$837M with Internal Rate of Return (IRR) of 33.8%.
· After-tax NPV8 of US$545M with IRR of 25.3%.
· Total gross revenue of US$6.5Bn over the 22-year period, with total gross profit totalling US$2.7Bn.
· Years of operation set at 22 to match that planned for the Amitsoq graphite mine.
· 4-year payback period on capital from start of production.
· Initial capital cost (Capex) of US$321M inclusive of a 25% contingency.
· Average operating cost (Opex) of US$2,211 per tonne of CSPG.
· Average annual processing of 80,000t of graphite concentrate at 95% graphitic carbon (C(g)) with production of 39,700t of active anode material in the form of coated spherical purified graphite (CSPG).
GreenRoc's CEO, Stefan Bernstein, commented:
"The Feasibility Study in respect of GreenRoc's planned downstream processing plant has delivered excellent results, with an after-tax NPV8 of more than half a billion US dollars. Having employed the industry's standard techniques and premium instrumentation where possible, we are confident of the robustness of the Feasibility Study. This view is corroborated by the inclusion of a 25% contingency which forms part of the modelled capital cost of US$321M.
"This Feasibility Study firmly places GreenRoc as one of the few contenders to supply the European EV Battery industry with domestically produced active anode material. On behalf of GreenRoc, I would like to extend our gratitude towards Innovate UK for the generous support of a £250k grant towards this Feasibility Study though its Automotive Transformation Fund.
"There are further possible improvements to the process design which we will be looking into in a second stage, commencing shortly, and we will provide updates on that in due course.
"With the already positive Preliminary Economic Assessment of the Amitsoq graphite mine and now this compelling assessment of the economics of establishing a downstream anode processing plant for our graphite, our confidence in our plans for a vertically integrated production model for Amitsoq, from mine to battery anode material production, has been greatly reinforced."
Highlights
· Pre-Tax Net Present Value at 8% discount rate (NPV8) of US$837M with Internal Rate of Return (IRR) of 33.8%.
· After-tax NPV8 of US$545M with IRR of 25.3%.
· Total gross revenue of US$6.5Bn over the 22-year period, with total gross profit totalling US$2.7Bn.
· Years of operation set at 22 to match that planned for the Amitsoq graphite mine.
· 4-year payback period on capital from start of production.
· Initial capital cost (Capex) of US$321M inclusive of a 25% contingency.
· Average operating cost (Opex) of US$2,211 per tonne of CSPG.
· Average annual processing of 80,000t of graphite concentrate at 95% graphitic carbon (C(g)) with production of 39,700t of active anode material in the form of coated spherical purified graphite (CSPG).
GreenRoc's CEO, Stefan Bernstein, commented:
"The Feasibility Study in respect of GreenRoc's planned downstream processing plant has delivered excellent results, with an after-tax NPV8 of more than half a billion US dollars. Having employed the industry's standard techniques and premium instrumentation where possible, we are confident of the robustness of the Feasibility Study. This view is corroborated by the inclusion of a 25% contingency which forms part of the modelled capital cost of US$321M.
"This Feasibility Study firmly places GreenRoc as one of the few contenders to supply the European EV Battery industry with domestically produced active anode material. On behalf of GreenRoc, I would like to extend our gratitude towards Innovate UK for the generous support of a £250k grant towards this Feasibility Study though its Automotive Transformation Fund.
"There are further possible improvements to the process design which we will be looking into in a second stage, commencing shortly, and we will provide updates on that in due course.
"With the already positive Preliminary Economic Assessment of the Amitsoq graphite mine and now this compelling assessment of the economics of establishing a downstream anode processing plant for our graphite, our confidence in our plans for a vertically integrated production model for Amitsoq, from mine to battery anode material production, has been greatly reinforced."
EQTEC expects Weighbridge sale to complete this month https://www.proactiveinvestors.co.uk/companies/news/1046609/eqtec-expects-weighbridge-sale-to-complete-this-month-1046609.html
"The farmout process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the Company to raise additional funds for its share of costs for this material project. We look forward to working with Envoi and with prospective farminees".
Loxley Gas Project Update
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has appointed UK based oil and gas divestment and project marketing specialists, Envoi Limited to facilitate the farmout of up to a 50% working interest in the Company's material 100% owned Loxley gas and hydrogen feedstock project ("Loxley"). The farmout seeks to fully fund the planned Loxley-1 appraisal drilling and testing programme with the Company's share of costs being carried by the farminee or farminees. The project has incontestable planning consent to proceed ahead (see RNS 10th January 2024).
Separately from Envoi's mandate, active discussions are ongoing with two UK listed energy companies interested in pursuing the farmout opportunity.
Loxley, one of the UK onshore's largest historic gas discoveries, was assessed in its most recent February 2023 Competent Persons Report ("CPR") to contain mid-case recoverable 2C Contingent Resources of 31.0 billion cubic feet net to UKOG, with an associated net to UKOG post-tax present values (discounted at 10%) of £124 million using 31 December 2022 gas prices and £87 million using an RPS Energy forward price forecast (see RNS 21st February 2023). Further development of the asset post appraisal would be required to move the 2C classification to Reserves (see glossary definitions).
The CPR is available on the Company's website www.ukogplc.com .
Stephen Sanderson UKOG's Chief Executive commented;
"The farmout process is designed to fully fund the Loxley appraisal programme and, if successful, remove the requirement for the Company to raise additional funds for its share of costs for this material project. We look forward to working with Envoi and with prospective farminees".
For further information, please contact:
Iron ore price set for 3rd weekly rise on China demand https://www.mining.com/web/iron-ore-price-set-for-3rd-weekly-rise-on-china-demand/
Mike Buck, CEO of Petro Matad, said:
"We are pushing to secure approval from Matad Soum for the land access required to execute our 2024 work programme and we are gearing up for operations during the summer. The negative reactions to the committee's decision and misinformation spread by activists were not unexpected and underline why the central government certification process is so important for the long term and is our preferred solution.
However, with 2024 parliamentary elections looming and central government moving slowly, we are pursuing the local solution as a priority. We are also pushing the central government hard to resolve its internal issues which have created the frustrating obstruction of the state special purpose certification process for Block XX. We will buy ourselves a long-delayed operating window with the local approval for 2024 if we can get it, but we do not want to go through such a process every year.
Separately, the progress made by our renewable energy joint venture is very pleasing and to see it so quickly in partnership with Japan's OECC and involved with the decarbonisation of the globally significant Oyu Tolgoi mine is testament to the credibility, professionalism and motivation of the team."
Nicole Galloway Warland, Managing Director of Thor Energy, commented:
"The Directors are delighted that this Stage 1 Commitment milestone has been met and are excited to move to the next phase of the HoA, working with IVR to complete all JV documentation.
"The Molyhil/Bonya Earn-in and the JV allow Thor to retain an equity interest in the prospective Molyhil tenements with reduced operational risk. Thor benefits from exploration upside on the Tenements and receives considerations in the form of cash and IVR shares.
"The Molyhil divestment and Bonya sale support the Company's focus on its priority US uranium assets, where we see the most significant and nearest-term value potential for Thor's shareholders."