Enough said14 Jun 2019 08:51
Highlights of the BKM Feasibility Study:
· Initial 9 year mine life producing up to 25,000 tonnes of copper cathode per annum
· Total Proved and Probable Ore Reserves1 of 51.5Mt @ 0.6% Cu for 303kt of contained copper and 0.39% total soluble Cu for 206kt of contained soluble copper
· Total Measured, Indicated and Inferred Resources2,3 of 69.6Mt @ 0.6% Cu for 451.9kt of contained copper
· Life of Mine ('LOM') Revenue of $1.27 billion and EBITDA of $563.3 million
· Initial capital expenditure $192.0 million (excluding contingency $31.4 million)
· Post Tax NPV8 of $133.5 million, 19.5% IRR (excluding closure costs)
· C1 cash cost of $1.65/lb and AISC of $1.78/lb
· Additional value enhancement opportunities identified with potential to improve valuation by a minimum of $35 million on a risked weighted basis (excluding exploration upside)
· Defined exploration targets close to the proposed BKM mine have potential to expand the current mineral inventory and substantially impact the value of the BKM project through mine life extension beyond 2030. Evaluation of these targets will be a priority for the next phase of work.
The BKM Feasibility Study LOM key metrics are highlighted in Table 1 below. All dollars are US dollars. The following economic assumptions were utilised:
· a long term copper price of $3.30/lb LME (London Metal Exchange);
· a real, after-tax, US dollar, discount rate of 8%;
· an Indonesian corporate income tax ("CIT") rate of 25%4; and
· an Indonesian Government Royalty of 4% (of revenue).