Scoping Study Delivers Robust Economics For Poochera Halloysite-Kaolin Project
A positive Scoping Study supports the proposed Poochera Halloysite-Kaolin Project as a technically sound and financially robust venture with the potential to generate significant cssh flows.
Life Of Mine (LOM) key financial metrics comprise the following:
- All In Sustaining Cost (AISC) averages A$396/tonne of fully refined kaolin with an anticipated selling price of A$700/tonne;
- Project Cashflow is approximately A$800M;
- Net Present Vale (Pre-tax using an 8% discount rate) is A$413M;
- Internal Rate of Return of 174%
Pre-Production capital cost is estimated at A$9M with a maximum cash requirement of A$25M prior to initial revenues being received.
Payback estimated at 15 months from start of mining with the projected A$28M dry-processing plant funded from cashflow generated from raw material shipping and toll wet-refining operations.
An initial mine life of 15 years producing premium grade refined kaolin to meet the large and growing supply shortfall in high value bright-white halloysite-kaolin product for ceramics applications.
The mine plan Production Target is based on the 2019 Mineral Resource and involves shallow open-cut mining of kaolinised granite at 500tpa, 7.6Mt over the LOM, which after processing and refining yields a LOM 2.8Mt of premium product.
Toll wet-refining facilities in Asia will be used, fed initially by Direct Shipping Ore (DSO) material until dry-processed material becomes available from a plant to be commissioned at site duing the second year of operation.
Both the initial bulk DSO material and bags of dry-processed product will be shipped through existing, or under development, port facilities.
Anticipated workforce of 30-40 people to reside locally or at Streaky Bay.
Time-line for Project development is to conduct environmental and prefeasibility studies through to mid-2020 and subject to obtaining all necessary regulatory approvals, commencement of operations are targeted for mid-2021.